Rolling Meadows Bankruptcy Attorney Explains Chapter 13 Confirmation...

When a case comes before the court, it must be either be recommended for confirmation or denied confirmation explains Rolling Meadows bankruptcy attorney.  If the case is recommended for confirmation, that means the Chapter 13 trustee is standing before the bankruptcy judge approving the proposed payment plan that you have tendered to the Chapter 13 trustee.  If the Chapter 13 trustee does not agree and does not recommend your case for confirmation, then you must make some type of amendment to get your case confirm or take it to a hearing before the bankruptcy judge.  

The Chapter 13 trustee’s opinion is very important to the judge but it is not the only opinion.  If you feel or if your attorney feels that you have proposed a plan in good faith that will satisfy all the requirements of the Bankruptcy Code and pay your creditors what they are entitled to under the Bankruptcy Code, then you can request that the matter be set for a hearing.  At this hearing, the bankruptcy judge will hear testimony from the trustee and from you and/or your bankruptcy attorney and the judge will typically make a decision on the spot as to whether or not your plan should be confirmed or not.  If the trustee denies confirmation of the plan, then you definitely have to go back and make some amendments, otherwise your case is going to be dismissed for your inability to propose a feasible, confirmable plan. 

The Chapter 13 plan, if it is accepted, is binding and it will last for the length of your plan subject to some modification procedures.  For example, if your case is a 3 to 5 year payment plan and you make all of your payments and you don’t have any significant changes, then your case is going to and within that 3 to 5 year period.  At that time, you will receive a Discharge in Bankruptcy which is a one-page document stating that your case has gone through to completion and no creditors can bother you on those debts again. 

Several creditors might file an objection at the beginning of your case because they don’t like the way that they are being treated either through the plan or prior to the plan.  A typical objection would be from a mortgage company who states that the amount that you are paying through the Chapter 13 trustee is not sufficient to pay off your bills in time.