Bankruptcy Confirmation

Debtors filing Chapter 13 Bankruptcy must submit a bankruptcy repayment schedule within 15 days of filing their bankruptcy petition. The bankruptcy court will schedule a confirmation hearing for Chapter 13 Bankruptcy cases no earlier than 20 days and no later than 45 days after the creditor's 341 meeting (unless the estate and creditors request it and no objection is filed) (11 USC § 1324(b). Creditors are given 25 days notice of the hearing. The confirmation hearing is held before the bankruptcy judge who reviews the bankruptcy repayment schedule, determines if it is realistic and if it adheres to the standards and codes outlined in the United States Bankruptcy Code. At the bankruptcy confirmation hearing the court has the legal authority to accept or reject the bankruptcy repayment plan. All parties including the creditors and debtors are also questioned under oath about the bankruptcy repayment schedule and the Bankruptcy Petition. Creditors may offer a variety of common objections, but the most common are the creditor's complaints that they will receive less under the repayment schedule than they would receive if the debtor's assets were liquidated. If the court accepts the Chapter 13 Bankruptcy plan the trustee must distribute the funds under the plan "as soon as is practicable." If the plan is not confirmed, it can be modified, or in some cases the case may be converted to a Chapter 7 Bankruptcy case.

Prior to bankruptcy confirmation under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, all debtors filing for bankruptcy must undergo credit counseling with credit a counseling agency which is approved by the United States Trustees agency. Debtors must also undergo a means test which determines if the debtor is eligible to file Chapter 13 Bankruptcy or Chapter 7 Bankruptcy.