The Chapter 13 confirmation hearing is where the bankruptcy judge decides whether to approve your repayment plan. Before it, the trustee and creditors can object. If the plan meets the legal tests, it is confirmed and becomes binding; if not, it must be amended or the case can be dismissed or converted.
If you have a hearing date coming up and a trustee objection in hand, call (415) 754-0115 to schedule your free consultation, or use our contact page so an attorney can review the objection before the deadline.
Where the confirmation hearing fits in a Chapter 13 case
A Chapter 13 case follows a predictable early sequence:
- Filing. The petition, schedules and proposed plan are filed. The plan is generally due within 14 days of the petition if not filed with it.
- First plan payment. Payments to the trustee usually must start within 30 days after filing, even though the plan is not yet approved.
- The 341 meeting. You answer the trustee's questions under oath. Our guide to the 341 meeting of creditors covers what to expect.
- Confirmation. The Bankruptcy Code calls for the hearing to be held no earlier than 20 and no later than 45 days after the 341 meeting, unless the court orders otherwise. Hearings are often continued while issues are worked out.
Pleasanton and the rest of Alameda and Contra Costa Counties fall within the U.S. Bankruptcy Court for the Northern District of California, which has its own local plan form and procedures. Whether you personally need to attend depends on local practice and the judge; your attorney will tell you.
What the judge looks for before confirming a plan
Section 1325 of the Bankruptcy Code lists the requirements. The ones that drive most objections are:
Good faith
The plan and the filing must be proposed in good faith. Judges look at the whole picture, including accuracy of the schedules and the reasons for filing.
The best-interests test
Unsecured creditors must receive at least as much as they would if your non-exempt assets were liquidated in a Chapter 7 case. Home equity above the California exemptions is a common reason this number goes up.
Feasibility
You must be able to make the payments. The trustee compares your income and expense schedules with the plan payment and asks whether the budget is realistic.
Disposable income and treatment of claims
If an unsecured creditor or the trustee objects, the plan generally must commit all projected disposable income for the applicable commitment period. Secured creditors, such as a mortgage lender, must be treated as the Code requires, and priority claims, such as certain recent taxes, must generally be paid in full.
Paperwork conditions that are easy to miss
Tax returns for the four years before filing must be filed, and domestic support obligations that come due after filing must be kept current. Plan payments must also be up to date. These are frequent reasons for a continuance.
Common objections from the trustee and creditors
An objection is not a rejection. It is a list of problems to resolve. Typical ones include:
- Plan payments behind as of the hearing date.
- Missing documents, such as pay stubs, tax returns or business records.
- A mortgage lender's proof of claim showing more arrears than the plan provides for.
- A car lender disputing the value used in a cramdown.
- Income or expenses that do not match bank statements, or an expense the trustee views as unreasonable.
- Unsecured creditors receiving less than the best-interests test requires.
Objections are often resolved by amending the plan, filing an amended budget, or providing documents. Language agreed with the trustee is often placed in the confirmation order itself.
What happens if confirmation is denied
If the court denies confirmation, the debtor is usually given a chance to file an amended plan. If an acceptable plan is not proposed, the court can dismiss the case or, if it is in the best interest of creditors, convert it to Chapter 7. Section 1307(c) lists denial of confirmation, together with denial of a request for more time to file another plan, as one of the grounds for dismissal or conversion.
Dismissal ends the automatic stay. A foreclosure sale, repossession or garnishment that was paused can resume, and refiling a second case within a year limits the stay unless the court extends it. Our article on refiling after a Chapter 13 dismissal explains those limits.
That is why the weeks before the hearing matter. Through our Chapter 13 bankruptcy practice, attorney Bob Somal can review the objections, help gather the records the trustee asks for, and propose changes aimed at a plan that is workable for you, not just acceptable on paper.
After your plan is confirmed
Confirmation binds you and your creditors to the plan terms. The trustee begins distributing your payments according to the plan. From there, the main tasks are:
- Making every plan payment on time, usually for three or five years.
- Keeping current on ongoing mortgage payments if you pay the lender directly.
- Filing tax returns on time and reporting significant income changes if your plan or trustee requires it.
- Getting permission before taking on significant new debt, such as a car loan.
If your income later drops or rises, the plan can sometimes be changed. Our guide to Chapter 13 plan modification explains how.
Frequently asked questions
Do I have to attend my Chapter 13 confirmation hearing?
Not always. Attendance requirements vary by court and judge, and many hearings are handled by the attorney and trustee. You should still be available in case questions come up.
Why was my confirmation hearing continued?
Continuances are common. They usually mean the trustee or a creditor raised issues that need more time, such as missing documents or a disputed claim amount.
Can creditors stop my plan from being confirmed?
Creditors can object, and a valid objection must be resolved. But the judge, not the creditor, decides whether the plan meets the Bankruptcy Code requirements.
Do I keep paying the trustee before confirmation?
Yes. Pre-confirmation payments generally must start within 30 days of filing, and falling behind is one of the most common reasons confirmation is delayed.
If your plan has drawn objections or you are worried about dismissal, call (415) 754-0115 to schedule your free consultation, or reach out through our contact page. We will review the objection, explain what the trustee is asking for, and talk through the options to keep your case on track.
Attorney Advertising. This article is general legal information for Bay Area residents, not legal advice, and does not create an attorney–client relationship. Every situation is different — please consult a licensed attorney about your specific circumstances.