Understanding the Chapter 13 Confirmation Hearing
When an individual (or married couple) files for Chapter 13 bankruptcy in South Florida, one of the steps in the bankruptcy process is the confirmation hearing. This hearing occurs so that the court can consider the elements of the debtor’s proposed repayment plan and can either approve the plan or send the debtor back to modify the terms. What do you need to know about the confirmation hearing, including where it falls in the bankruptcy process and what you should expect? Consider the following information from a West Palm Beach bankruptcy lawyer at Kelley, Fulton, Kaplan & Eller.
Why a Confirmation Hearing?
The confirmation hearing is part of the Chapter 13 bankruptcy process through which the bankruptcy court determines if the debtor’s proposed plan complies with relevant bankruptcy law and can be approved. Once a plan is approved, the debtor is then on track to complete the terms of the repayment plan within a three to five year period, after which point remaining eligible debts may be discharged. Creditors receive a 28-day notice of the confirmation hearing and then have the ability to raise objects to confirmation of the plan.
When Does a Confirmation Hearing Occur?
The confirmation hearing in a Chapter 13 case must take place within 45 days of the 341 meeting of creditors. The 341 meeting of creditors will occur between 21 and 50 days of the date that the debtor files the Chapter 13 bankruptcy petition.
What to Expect at the Confirmation Hearing
At the confirmation hearing, the court will assess the debtor’s proposed repayment plan to determine whether it is “feasible” and whether it meets all of the requirements set forth under the US Bankruptcy Code. Specifically, the repayment plan must ensure that all priority creditors are repaid in full, and non-priority creditors will need to be repaid at least the same amount they would have received if the debtor had filed for Chapter 7 bankruptcy and all non-exempt assets had been liquidated and repaid to creditors. There are some exceptions, so it is critical to create your repayment plan with assistance from an attorney.
What if the Reorganization Plan is Not Confirmed?
If the court does not confirm the plan, it is important to understand that this decision does not automatically end the bankruptcy case. First, the debtor can file a modified plan. Depending on the debtor’s circumstances, the debtor also may be able to convert the case from a Chapter 13 case to a Chapter 7 case. If the court declines to confirm a modified plan, the case may be dismissed.
Contact Our West Palm Beach Bankruptcy Lawyers Today
If you are planning to file for Chapter 13 bankruptcy, or if you are considering personal bankruptcy but do not yet have a clear understanding of your eligibility for Chapter 7 or Chapter 13 bankruptcy, it is extremely important to have a lawyer assist you. One of the experienced West Palm Beach bankruptcy attorneys at Kelley, Fulton, Kaplan & Eller can speak with you today to provide you with more information about bankruptcy options in South Florida, and the details you need to begin planning for a bankruptcy filing. Contact us today to begin working on your bankruptcy case.
Source:
uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-13-bankruptcy-basics
