In the majority of cases where the court denies a chapter 13 plan, it is because a debtor did not comply with requirements outlined by your attorney or the court. In order for your chapter 13 plan to be confirmed, you must:
1) Attend the mandatory 341 hearing (also called meeting of creditors hearing) – see blog post “Will I have to go to court after I file for bankruptcy” posted on December 7, 2012.
2) Have made your first chapter 13 payment within 30 days of filing your case. In some districts, your chapter 13 payment will not be approved if you are behind on payments; therefore, it is important that you maintain your payments in your chapter 13 case to make sure your plan will be confirmed.
Your Bond & Botes attorney will make sure that you know when your first payment is due, how much is due, how to make the payment and where to mail the payment so you should NOT miss the first payment. Eventually, your payments will be payroll deducted if you are working but that takes time to get setup so you must ensure that you mail each payment on time until you see the payments coming out of your check.
3) If you owe child support obligations, you must be current on your post-petition child support obligations (all child support payments due after your bankruptcy filing).
-although you may have past child support obligations paid in your chapter 13 plan, you must keep your current obligations current or you will NOT receive a discharge in chapter 13.
4) Your have filed all required tax returns due within four years of filing your petition. Also, that you have provided copies of such returns to your attorney so that the trustee can be provided your most recent tax return within 7 days prior to your 341 hearing.
5) Have been honest on your chapter 13 petition and schedules regarding your assets and debts. If you are not honest then the court may find that you filed in bad faith and not approve your plan.
-At Bond & Botes, you will meet with an attorney to help ensure your petition and schedules reflect the information you provided but you must be honest with your attorney.
If you have complied with all the requirements and your Bond & Botes attorney has not mentioned any issues to you about your case, you plan should be fine. If you have any questions or concerns about the confirmation of your chapter 13 plan being approved, please contact your Bond & Botes attorney as soon as possible to discuss those issues.
Mary Pool is a shareholder of the Bond & Botes Law Offices in Montgomery and Opelika, Alabama. She holds a Bachelor of Science from Auburn University at Montgomery, and a Juris Doctorate from Faulkner University’s Jones School of Law. She has represented thousands of clients over her more than 11 years working in the bankruptcy field. Read her full bio here.