What Is a Chapter 13 Confirmation Hearing? What To Expect

A Chapter 13 confirmation hearing is when a bankruptcy judge reviews your repayment plan and decides whether to approve it. By law, this hearing happens between 20 and 45 days after your 341 meeting of creditors. If your plan is approved, you will make payments for three to five years. If not, you can change your plan and try again.

Filing for Chapter 13 bankruptcy involves many steps, with one of the most important being the confirmation hearing. This is where a judge decides whether your repayment plan is sound and workable. Understanding what happens at this hearing and how to prepare can help make a difference in your case.

If you are considering Chapter 13 bankruptcy, a bankruptcy attorney can review the circumstances surrounding your case, advise you on your options, and represent you at the hearing.

Where the Confirmation Hearing Fits in the Chapter 13 Process

Under 11 U.S.C. § 1324, the confirmation hearing must be scheduled between 20 and 45 days after the 341 meeting of creditors. The actual timing can vary depending on the court and local rules, but for every Chapter 13 case, a confirmation hearing is mandatory. 

The level of court involvement can differ from one district to another. For instance, in the Western District of Texas, the Court excuses the debtor and attorney from attending the confirmation hearing if they did not file objections or the trustee recommended confirmation. In contrast, in the District of Colorado, at least one judge’s procedures require the debtor to appear in person. Due to these varying rules, it is best to check your local bankruptcy court’s rules or ask a bankruptcy lawyer what to expect.

What Happens at the 341 Meeting of Creditors?

Before the confirmation hearing, you’ll attend the 341 meeting of creditors, which is conducted by a trustee, rather than a judge. You’ll answer questions under oath regarding your bankruptcy paperwork, finances, and proposed plan. Creditors can also attend and ask questions. 

What happens at this meeting can affect your confirmation hearing. The trustee may point out concerns and try to resolve them informally. If creditors or the trustee want to formally object to your plan, they must file written objections at least seven days before the confirmation hearing. The court will address any remaining objections at or before the confirmation.

What Is the Chapter 13 Repayment Plan?

A Chapter 13 repayment plan is a budget you submit soon after your case begins. It sets a fixed payment amount you will make to the bankruptcy trustee over three to five years. The Chapter 13 trustee uses your payments to pay priority debts in full, handle secured debts, and distribute any remaining disposable income to unsecured creditors, who must get at least as much as they would in a Chapter 7 bankruptcy case.

Your debt repayment plan should be specific; it should include details such as:

• How much will you pay each month
• How long will the plan last
• How will different types of debts be treated
• How will you catch up on secured debt arrears, such as a mortgage
• What percentage of unsecured creditors will receive

The length of your plan depends on your total debt load, monthly income, and disposable income, as well as whether you make payments throughout the plan period.

You must file your proposed plan with your bankruptcy petition or within 14 days, unless the court grants an extension. Payments must begin no later than 30 days after the date of the filing of the plan or the order for relief, whichever comes first. Once the bankruptcy judge confirms your plan, the trustee will pay creditors in accordance with the approved terms.

What Is the Purpose of the Confirmation Hearing?

The judge overseeing your Chapter 13 bankruptcy case will conduct a confirmation hearing to determine if your repayment plan is possible and that it meets the Bankruptcy Code requirements. At the court hearing, either the creditors or the trustee can object to your plan. The judge will allow both sides to present their arguments and decide whether your plan meets the requirements set out in the Bankruptcy Code.

The judge must find that your plan satisfies several requirements before approving it. Three of the most significant are:

• Legal compliance: The plan must satisfy all requirements of the Bankruptcy Code. This includes paying priority debts such as domestic support obligations and recent taxes.
• Good faith: The plan itself must be proposed in good faith. A separate requirement also requires that the act of filing the bankruptcy petition was in good faith. Courts look at the whole picture of the debtor’s financial situation and conduct. The judge will look at whether you are genuinely trying to repay creditors rather than gaming the system, whether your income and expense disclosures are accurate, and whether the plan unfairly favors any particular creditors.
• Feasibility: The judge must find that you can make all payments under the plan and comply with its terms. That means reviewing whether your income is stable enough to sustain payments over three to five years and whether your projected expenses are reasonable.

Once these conditions are met, the process can continue.

What Happens at the Confirmation Hearing?

Most confirmation hearings are brief, especially when no objections have been filed. The following is often how the process works.

• The judge reviews the plan: The judge confirms that all required documents have been submitted, reviews any written objections, and considers the trustee’s recommendation
• The trustee shares their opinion: The trustee will either recommend confirmation of the plan, raise concerns about whether it meets legal requirements, or suggest changes
• Creditors can raise objections if they have any: In general, creditors don’t attend confirmation hearing, instead submitting their objections in writing beforehand
• The judge asks questions: The judge may ask about the stability of your income, the basis for specific expenses, or how to treat particular debts under the plan
• The judge rules: At the end of the hearing, the judge will do one of the following:
  • Confirm the plan as proposed
  • Deny confirmation and direct you to file an amended plan addressing the identified issues
  • Dismiss the case

If the court doesn’t confirm your plan, you can file a modified plan before confirmation. Common changes include raising the monthly payment, changing the plan’s length, adjusting how a secured debt is handled, or fixing calculation mistakes. If the judge asks for changes, you’ll be given a deadline to submit the new plan by.

What Happens if the Court Doesn’t Confirm Your Plan?

If the court denies your plan, it doesn’t mean your case is over. In most instances, the judge will let you file a new plan instead of dismissing your case. You’ll need to fix the issues the judge mentioned and file the new plan by the court’s deadline. The court may set another confirmation hearing or approve the new plan without a hearing if there are no further objections. Common changes to your plan include raising the monthly payment, extending the plan to up to the five-year maximum, changing how a secured creditor is handled, or providing additional supporting documents.

The Bankruptcy Code does not set a limit on how many times you can change your plan before it is confirmed, but the court can dismiss your case or convert it to Chapter 7. Reasons for doing so include unreasonable delays that harm creditors or failure to address prior issues. Continued failures with no evidence of making real progress can lead to conversion or dismissal.

What Happens After Confirmation?

Once the judge approves your plan, the confirmation order is binding on you and all creditors. Your most immediate obligation is making every payment on time. These go to the trustee monthly, usually on the same date. Many courts require payment through automatic wage deduction. Missing payments can result in your case being dismissed or converted to Chapter 7. In addition to your plan payment, you must keep up with regular mortgage payments (separate from any arrears being cured through the plan), vehicle payments, property taxes and insurance, homeowner association fees, and domestic support obligations like child support or alimony.

You should also meet other ongoing requirements, such as filing your tax returns each year and giving copies to the trustee. You also need court or trustee approval before taking on new debt, as well as alerting the trustee to any changes to your income or address. Failing to stay current on your obligations or tax filings can give the judge grounds to dismiss your case or convert it to Chapter 7 liquidation.

Seek Legal Advice From a Bankruptcy Attorney

The confirmation hearing is a crucial step in your Chapter 13 case. It’s the point where your proposed plan becomes a binding court order. Unless you’re extremely well-versed in this area of law, adding an expert to the mix is your best option.

Bankruptcy involves complex legal issues, and the rules vary significantly depending on where you file. A bankruptcy attorney can help make sure your plan meets all legal requirements. If you need to change your plan, they can guide you through that as well. When you file for a Chapter 13 bankruptcy, you must submit a repayment plan outlining how you plan to pay creditors. Preparing the repayment plan may become challenging, as it requires knowledge of bankruptcy laws. FindLaw offers a directory of bankruptcy law offices near you.