You probably know that in a Chapter 13 bankruptcy, you as a debtor propose a plan to set out how creditors will be paid over a minimum of three years to a maximum of five years. The plan sets out specified monthly payments the secured (examples are cars, house or furniture) or priority (examples are taxes or child support arrears) creditors will be paid over the life of the plan and how much unsecured (credit cards, medical or signature loans) creditors will be paid as well. All creditors are mailed a copy of the plan and if they do not agree with how they are treated in the plan, they can object to the plan. That objection will be taken up before the Judge at the confirmation hearing. The confirmation hearing is where the Judge assigned to the case will approve the case or rule on any objections by creditors or the trustee to the terms the plan.
The bottom line is that you want your case approved for confirmation! Once the court confirms the plan, then it is just a matter of making all the payments in order to receive your discharge. The discharge order is the goal of every bankruptcy. This means that you have completed bankruptcy and you will be debt free with the exception of anything you were paying direct (like a house payment) or any on-going child support obligation.
If you are having financial difficulty, please let our attorneys at Bond & Botes walk you through the process. We want to help you find a fresh start!
Gail Hughes Donaldson is a Managing Partner 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 Thomas Goode Jones School of Law. She’s been helping families work through the bankruptcy process since she started with Bond & Botes back in 1993 as a paralegal. Read her full bio here.