Under the rules of Chapter 13 bankruptcy, filers must provide full disclosure of income, assets and debts to be included in a debt restructure and repayment plan within 14 days of initial filing. The judge will review the proposed plan and forward it to all creditors listed in the petition. Within 45 days, the judge must then schedule what is known as a Plan and Confirmation Hearing.
Debt is categorized into three primary categories:
The Plan Confirmation Hearing is scheduled among creditors and the petitioner (or attorney) to determine whether the repayment plan is realistic, given the creditors' demands and the petitioner's financial status. Creditors may use the hearing to object to specifics of the plan. Typically, creditors are apt to object if the repayment of debt is significantly less than they would receive if the debtor's listed asset were to be liquidated under Chapter 7. Creditors may also object if they determine that the plan does not commit enough of the debtor's disposable income toward repayment over the course of the three or five years.
. During the plan repayment period, creditors have no further right to approach the debtor directly for collections purposes. Everything must go through the courts, including discovery that the debtor failed to list an asset or failed to make payments through the court judgment.
Like the Chapter 7 Creditors Meeting, there is also a Chapter 13 Creditors Meeting that you will need to attend. However, it is not necessary that you attend the Confirmation Hearing. Your Golden Law Group attorney will handle all records, petitions, court meetings and presentations at all hearings. Of course, if you choose to attend, you are welcome to do so.
Learn more about the advantages of Chapter 13 bankruptcy. Contact a Chapter 13 bankruptcy lawyer at The Golden Law Group to schedule a free initial consultation. Offices are conveniently located in Brandon and Bradenton, Florida. The firm represents clients in communities throughout Manatee County, Hillsborough County and Sarasota County, Florida.