Plan Confirmation

It is this office’s policy to allow cases to be confirmed in court without the presence of the attorney of record or his or her representative. Confirmable cases will be read into the record as confirmed at the call of the Court list.

If a case appearing on the list is contested, simply appear at the hearing, at the noticed date and time, and advise the Trustee of same.

To be excused from appearing at the hearing, a case must meet the following criteria:

  • The debtor must be missing no more than 1 payment as of the date the case is prepared for confirmation
  • There are no objections to plans, claims, etc. made by either the debtor or any creditors
  • The Trustee is in receipt of all documents requested (Proof of Income, Appraisal of Property, etc.) prior to the hearing
  • There are no claims as filed which render the plan infeasible (claim amounts are much higher than estimated in plan, claim filed as secured rather than priority or unsecured, etc.)

Forms:

Objections to Confirmation of the Plan

 Many objections from the bankruptcy trustee will revolve around compliance with bankruptcy law or feasibility of your plan. Some common reasons that bankruptcy trustees object to chapter 13 plans include:

  • The Debtor failed to provide required documentation, such as proof of income, that the trustee needs to evaluate your Chapter 13 plan
  • The Debtor has not included or have not provided for full payment of debts that must be repaid in a Chapter 13 case
  • The Debtor does not appear to have sufficient income to successfully make the proposed Chapter 13 plan payments
  • The plan does not provide for unsecured creditors to receive at least the amount they would have if you had filed for Chapter 7 bankruptcy (the “best interest of creditors test”)
  • The Debtor does not commit all disposable income and proposes less than 100% plan
  • The trustee may also object to confirmation of the chapter 13 plan if the Debtor has fallen behind in plan payments prior to the confirmation hearing.

By Creditors

 Some creditors are paid in full through the Chapter 13 bankruptcy plan. But, many unsecured creditors often receive less than full payment, or no payment at all.   Additionally, the proposed plan may include other elements that a creditor disagrees with, such as valuation of a piece of property that serves as security for a debt or a proposed reduction in interest rate.

Some common reasons creditors object to Chapter 13 plan confirmation include:

  • Disagreement about the outstanding balance on the debt
  • Disagreement about the past-due amount
  • Objection to a “cramdown” of an automobile loan
  • Disagreement about the classification of the debt

When the Trustee or a Creditor Objects?

 If a creditor or the trustee makes an objection, often an agreement can be reached.

If the trustee objects to confirmation because you haven’t provided adequate information, you may be able to resolve the issue by providing the requested documentation promptly. If you have failed to provide for full payment of a creditor who must be repaid, you and your attorney can try to rework your plan to include the required payment and submit an amended plan. If a creditor objects to your valuation of an asset, your attorney may provide additional information to the creditor or trustee supporting the listed value, or the parties may agree to split the difference or to hire an appraiser to settle the dispute.

In short, the Debtor (if  Pro Se) or the Debtor’s attorney may be able to resolve the issue that triggered the objection in advance of your confirmation hearing. In that situation, the creditor or trustee will likely withdraw the objection, leaving the way clear for confirmation. If the issue can’t be corrected a response to the objection must be filed with the Court and ultimately, it is the bankruptcy court judge who decides whether or not to confirm your Chapter 13 plan.

Take Note:

  • If the chapter 13 case is just dragging on and on with little to no progress, then a party-in-interest, creditor or trustee may file a motion with the court to request a hearing and dismissal for unreasonable delay.

It is this office’s policy to allow cases to be confirmed in court without the presence of the attorney of record or his or her representative. Confirmable cases will be read into the record as confirmed at the call of the Court list.

If a case appearing on the list is contested, simply appear at the hearing, at the noticed date and time, and advise the Trustee of same.

To be excused from appearing at the hearing, a case must meet the following criteria:

  • The debtor must be missing no more than 1 payment as of the date the case is prepared for confirmation
  • There are no objections to plans, claims, etc. made by either the debtor or any creditors
  • The Trustee is in receipt of all documents requested (Proof of Income, Appraisal of Property, etc.) prior to the hearing
  • There are no claims as filed which render the plan infeasible (claim amounts are much higher than estimated in plan, claim filed as secured rather than priority or unsecured, etc.)

Forms:

Objections to Confirmation of the Plan

 Many objections from the bankruptcy trustee will revolve around compliance with bankruptcy law or feasibility of your plan. Some common reasons that bankruptcy trustees object to chapter 13 plans include:

  • The Debtor failed to provide required documentation, such as proof of income, that the trustee needs to evaluate your Chapter 13 plan
  • The Debtor has not included or have not provided for full payment of debts that must be repaid in a Chapter 13 case
  • The Debtor does not appear to have sufficient income to successfully make the proposed Chapter 13 plan payments
  • The plan does not provide for unsecured creditors to receive at least the amount they would have if you had filed for Chapter 7 bankruptcy (the “best interest of creditors test”)
  • The Debtor does not commit all disposable income and proposes less than 100% plan
  • The trustee may also object to confirmation of the chapter 13 plan if the Debtor has fallen behind in plan payments prior to the confirmation hearing.

By Creditors

 Some creditors are paid in full through the Chapter 13 bankruptcy plan. But, many unsecured creditors often receive less than full payment, or no payment at all.   Additionally, the proposed plan may include other elements that a creditor disagrees with, such as valuation of a piece of property that serves as security for a debt or a proposed reduction in interest rate.

Some common reasons creditors object to Chapter 13 plan confirmation include:

  • Disagreement about the outstanding balance on the debt
  • Disagreement about the past-due amount
  • Objection to a “cramdown” of an automobile loan
  • Disagreement about the classification of the debt

When the Trustee or a Creditor Objects?

 If a creditor or the trustee makes an objection, often an agreement can be reached.

If the trustee objects to confirmation because you haven’t provided adequate information, you may be able to resolve the issue by providing the requested documentation promptly. If you have failed to provide for full payment of a creditor who must be repaid, you and your attorney can try to rework your plan to include the required payment and submit an amended plan. If a creditor objects to your valuation of an asset, your attorney may provide additional information to the creditor or trustee supporting the listed value, or the parties may agree to split the difference or to hire an appraiser to settle the dispute.

In short, the Debtor (if  Pro Se) or the Debtor’s attorney may be able to resolve the issue that triggered the objection in advance of your confirmation hearing. In that situation, the creditor or trustee will likely withdraw the objection, leaving the way clear for confirmation. If the issue can’t be corrected a response to the objection must be filed with the Court and ultimately, it is the bankruptcy court judge who decides whether or not to confirm your Chapter 13 plan.

Take Note:

  • If the chapter 13 case is just dragging on and on with little to no progress, then a party-in-interest, creditor or trustee may file a motion with the court to request a hearing and dismissal for unreasonable delay.