DALLAS CHAPTER 13 BANKRUPTCY ATTORNEY: WHAT IS CONFIRMATION?
DALLAS CHAPTER 13 BANKRUPTCY ATTORNEY: Debtors in Chapter 13 bankruptcy file a repayment plan with the Court that states which creditors will be repaid and the terms of the repayment. The plan is reviewed by the Trustee and the creditors who may or may not file an objection to confirmation of the plan. Objections to confirmation ask the bankruptcy judge to not approve the Chapter 13 plan. Usually these objections are filed because the Trustee believes that the plan doesn’t meet the requirements of the Bankruptcy Code or the creditors don’t like their treatment in the plan. Objections to confirmation can be resolved by a hearing in front of a bankruptcy judge but usually they are resolved by agreement before the hearing. Once all of the objections to confirmation are resolved, assuming the plan meets the other requirements of confirmation, such as the debtor having paid all payments due under the plan at the time of confirmation, the bankruptcy judge will sign an order confirming the plan. Confirmation makes the plan an order of the court rather than just a proposal of reorganization of debts by the debtor. A confirmed plan changes the creditor’s rights and sets forth what the debtor must do in order to receive a discharge in the bankruptcy case.
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