Chapter 13 Bankruptcy: Some Crucial Information About The Confirmation Hearing
An Iowa Chapter 13 bankruptcy can help a debtor by allowing them to repay some or all their debts through a repayment plan. Usually, a Chapter 13 repayment plan lasts for approximately three to five years. However, before a debtor can start making repayments based on their Chapter 13 repayment plan, a judge must approve the plan. Usually, a confirmation hearing is held to determine if a repayment plan deserves approval.
What Is the Purpose of the Confirmation Hearing?
A confirmation hearing is quite vital in a Chapter 13 bankruptcy case. At this hearing, the court decides whether or not to approve a debtor’s proposed repayment plan.
During the confirmation hearing, a judge decides whether your proposed repayment plan is practicable. A feasible plan is one you can abide by. Also, during the hearing, a judge determines whether you filed your bankruptcy in good faith or bad faith. Additionally, at the confirmation hearing, a judge checks whether your unsecured creditors will get through the repayment plan, at least what they would have gotten had you filed Chapter 7 bankruptcy.
Both creditors and the bankruptcy trustee can be present at the confirmation hearing, but only a trustee is required to be present for your initial confirmation hearing.
It is important to note that creditors and trustees are allowed to object to the confirmation of repayment plans.
Since a confirmation hearing is like any other court hearing, the judge will listen to both your side and that of any objecting party before making a final decision. However, fighting objections from creditors or the bankruptcy trustee can be challenging. Therefore, you must work with an experienced bankruptcy attorney who can help you present strong arguments.
Is It Mandatory for a Debtor To Attend the Confirmation Hearing?
You don’t have to attend a confirmation hearing if your bankruptcy attorney attends the hearing. Often, attorneys attend confirmation hearings without their clients. If you must be present at a confirmation hearing, your attorney will inform you and explain why you must attend the hearing.
What Are the Possible Outcomes in a Confirmation Hearing?
It is almost impossible to predict what outcome you’ll get at your confirmation hearing. However, typical results include;
- Approval and confirmation of your plan
- A continuation of the confirmation hearing
Your Chapter 13 repayment plan will most likely be confirmed if there are no objections or if you successfully refute any objections to the confirmation. Once your plan is approved, you must abide by its terms, and your creditors must allow you to make repayments according to your plan without harassing you. On the other hand, the hearing will most likely continue if you need to amend your repayment plan or deal with some issues affecting confirmation.
Is Chapter 13 Bankruptcy a Good Option for You?
If you need help determining whether Chapter 13 bankruptcy is a good option for you, contact a Southeast Iowa bankruptcy attorney today at the Noyes Law Office to schedule a consultation. Apart from Chapter 13 bankruptcy, other bankruptcy options are available. So, suppose Chapter 13 bankruptcy is not a good option for your case. In that case, our team of experienced bankruptcy attorneys will take you through everything you need to know about other available options.