Within 45 days from the 341 Meeting of the Creditors the bankruptcy court must schedule and hold a confirmation hearing to determine if the Chapter 13 Bankruptcy plan meets the standards established under the U.S. Bankruptcy Code and if the debtor can meet the payment schedule.
The Confirmation Hearing for the Chapter 13 Repayment Plan
A twenty-five day notice will be given to all creditors, and creditors may make objections to the plan. Objections vary but generally are made by creditors to challenge the amount of the debt payments scheduled under the plan.
Modifying a Chapter 13 Bankruptcy Plan in Court
Plans can be modified if circumstances arise (job loss or severe health condition) which does not allow the debtor to continue to make their Chapter 13 Bankruptcy plan payments.
In some cases bankruptcy plan payments may be lowered or the court may allow the percentage paid to creditors to change if they determine the debtor no longer has the income to fund the amounts the court originally confirmed.
All plan changes must meet the standards established under bankruptcy law. Under certain conditions plan payments must be increased. For instance, the court may increase the required payments if the debt claims, which are confirmed, are higher than originally estimated.
Plans may also be modified, either before or after acceptance, if the debtor failed to list all of their creditors. Modifications can be requested by the debtor, the trustee or a creditor.
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