The Confirmation Hearing
After you have been to The Sellers Law Firm and met with one of our Montgomery bankruptcy attorneys and have filed a Chapter 13 debt consolidation plan, then you heard us mention the confirmation hearing. In your debt consolidation plan, we have devised a repayment schedule over a period of three to five years. Since the time that the plan has been filed, we have likely made a few changes, tweaked it, and hopefully made it better. You have also been to a Section 341 Meeting of Creditors. Likely you were nervous prior to the creditor’s meeting, but then realized that everything went smoothly. In the Meeting of Creditors it only took three to five minutes to complete your testimony, and hopefully this relieved a lot of your anxiety. The next step in your Chapter 13 process is a confirmation hearing.
In a Chapter 13 debt consolidation, we propose a plan in which you will pay back all or part of your creditors over a period of three to five years. We propose this plan in good faith by stating that this is the best solution for you to be able to get a fresh start on your debts. Since we're filing a Chapter 13, we're likely trying to save some of your secured property such as your house, car, or furniture; however, the plan cannot move forward unless it is actually confirmed by the bankruptcy judge. Our final hurdle to overcome is the confirmation hearing.
At the confirmation hearing, we are proposing a plan to the bankruptcy judge. Generally there are few if any obstacles to having this confirmed. Occasionally, the Bankruptcy Administrator, the trustee, or even a creditor may have an objection to the way that we are proposing that your debt be repaid. Our Montgomery bankruptcy attorneys will work closely with anyone who files an objection to get these objections resolved so that your plan will then be feasible.
If your case is filed in the Northern Division of the Middle District of Alabama, you are likely not have to be present for your confirmation hearing. One of the attorneys from The Sellers Law Firm will be present, but it is rare that a client is needed. However, if your case is filed in the Northern Division of the Southern District of Alabama, which is in Selma, you will be present for the hearing.
Even though you may be present, it is extremely rare that you will ever have to give any testimony or even speak at this hearing regardless of which division your debt consolidation plan is filed. A bankruptcy judge must still confirm the feasibility of the repayment plan.
As was stated, normally any objections are resolved prior to the confirmation hearing. If the objection cannot be worked out by your attorney and by either the trustee or the creditor’s attorney, then the bankruptcy judge will set an evidentiary hearing to hear arguments from both sides.
At the evidentiary hearing, the judge will take testimony from both parties and will listen to arguments from all attorneys, and then make a decision on how the case must move forward. Normally, the only creditors who will spend the time to go to an evidentiary hearing will be a secured creditor in which you owe a large sum money. It must be stressed that objections to confirmation are normally not resolved at an evidentiary hearing; they are resolved informally by the attorneys prior to confirmation. We always tell our clients to not stress over the confirmation hearing because by this point in time we should have all the documents filed and the Chapter 13 plan is working.
At The Sellers Law Firm, we want you to completely understand each part of the process. Come spend time and meet with our Montgomery bankruptcy attorneys and discuss the options to resolving your debts. All consultations are always free, and we can usually see you within 24 hours! We have offices located in Montgomery, Selma, Greenville, and Troy. Please call us at 334-LAWYERS (529-9377) to meet the team! You may also reach us by using the “text us” link or Contact Form on our website. Remember that doping nothing, changes nothing so call us today!