What is a Confirmation Hearing in Chapter 13 Bankruptcy?

In Chapter 13 Bankruptcy cases, the Confirmation Hearing is the culmination of a process that begins as soon as the case is filed, a process that can last anywhere from 90 days to 8 months (maybe even longer in some cases) and involves all of the major players in any Chapter 13 case:

The Debtor, The Trustee, Creditors, and of course, the Bankruptcy Judge.

Within 14 days of filing the case, the Debtor must file a Chapter 13 Payment Plan with the Bankruptcy Court and begin making payments under that plan.  All of the Debtor’s creditors will receive notice of the case filing and the payment plan. The creditors have an opportunity to file a Proof of Claim with the Court where they let everyone involved in the case know what they think the Debtor owes them, and are supposed to provide proof of what the Debtor owes (like a promissory note, or contract signed by the Debtor).  Creditors have 90 days from the concluded 341 Meeting to file a Proof of Claim.

During this time, the Trustee is accepting the Debtor’s payment and distributing the payment to creditors according to the original plan filed by the Debtor.  For me, a Debtor’s attorney, this is by far the busiest time in a case.  Reviewing, and objecting when needed, to proofs of claim filed by creditors in a Chapter 13 case is extremely important and can wind up saving my client thousands of dollars.  Creditors also have a chance to object to the Debtor’s plan during this time.

Once all claims have been filed, and all objections made by the Debtor or creditors have been resolved, the case can be confirmed by the Bankruptcy Judge IF the Debtor is current with payments to the Trustee.  When the Judge Confirms a Chapter 13 payment plan, he or she places a stamp of approval on the Plan and all parties are bound by that Court Order as the case proceeds forward.  While the Debtor can modify a Confirmed Plan later on, all issues regarding the validity of a debt are determined in the Confirmation Order.

So, the Confirmation Hearing is a big deal.  It really sets the tone for the 3 to 5 year trip through the Chapter 13.  In every case I file for my clients I strive to make sure the case is Confirmed promptly and, through the objection to claims process, ensure that my clients only pay the legitimate claims of their creditors.

Do I have to Go to Court When I file for Bankruptcy?

DO I HAVE TO GO TO COURT???

I hear this plea from clients all the time, and, to be honest, some of my attorney friends too.  That is “Please tell me I don’t have to go to Court!!!”

The truth is, in a typical Chapter 7 Bankruptcy case filed in Orlando, my clients never step foot inside the Bankruptcy Court.  This result is not due to any special magic powers on my part.  Nope.  It’s the result of thorough case preparation, open client communication, and clients who listen to the advice I give them.

What about Chapter 13 bankruptcy cases, you ask?  Basically, as long as you make your Chapter 13 Trustee payments on time, I can guarantee that if I am your attorney and you file a case in the Orlando Bankruptcy Court you will not be required to appear in front of the Bankruptcy Judge even one time in the 3 to 5 years you are making your way through the bankruptcy case.

Now, every Debtor who files for Bankruptcy must attend a meeting, about a month after the case is filed, with the Trustee appointed to his or her case.  This is known as the “Trustee’s Meeting” or sometimes the “Meeting of Creditors”, or sometimes the “341 Meeting”.  No matter what it’s known by, you must attend and, in the majority of cases, this is the only time you will have to appear in front of anyone other than your own bankruptcy lawyer!

You can’t afford to miss time away from work.  Who can?  Fortunately, you can rest assured that you are probably only going to have to take some time away from work once during your trip through the bankruptcy process.

Do you have other questions about Chapter 13 Bankruptcy?  Post them in the comments section below this post!