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if you’re considering filing for Chapter 13 bankruptcy in Raleigh, one of the most important steps is getting your repayment plan approved by the court. This process, known as plan confirmation, can seem intimidating, but understanding what to expect can help you navigate it more easily.
As a bankruptcy attorney serving the Raleigh area, I want to explain the plan confirmation process, including what our local trustees look for and the common objections you might face.
What is Chapter 13 Bankruptcy Plan Confirmation?
When you file for Chapter 13 bankruptcy, you propose a repayment plan (see sample) outlining how you’ll pay back a portion of your debts over a 3-5 years. This plan must be approved or “confirmed” by the bankruptcy court before it can take effect.
During confirmation, the court, trustee, and creditors review your plan to ensure it meets legal requirements.
Once your plan meets all requirements and objections are resolved, the court confirms it at a hearing. Once the plan is confirmed, the Chapter 13 Trustee distributes funds to creditors according to the plan’s terms.
Getting Your Chapter 13 Plan Approved
The court will schedule a confirmation hearing after you file your Chapter 13 petition and propose your repayment plan. This usually happens within about 45 days of your 341 meeting, where the Trustee can ask questions about your case.
During this time, the Chapter 13 Trustee assigned to your case will review your plan to make sure it conforms to all the requirements under bankruptcy law.
In Raleigh, Trustees want to see that your plan:
- Pays off priority debts in full, like child support, alimony, and certain taxes
- Gives secured creditors at least the value of their collateral or keeps up with ongoing payments
- Puts all of your disposable income towards the plan for the required 3-5 years
- Treats unsecured creditors, like credit card companies, fairly
If your plan meets these requirements and no one objects, the court will likely approve your plan at the hearing.
Dealing with Objections to Your Chapter 13 Plan
It’s not unusual for the trustee or creditors to raise objections to your proposed plan. In Raleigh, some of the most common objections include:
- Feasibility: The trustee might argue that your plan isn’t feasible if you are not paying the required amount to your creditors.
- Good Faith: Creditors may object if they think you’re not acting in good faith, like by proposing to pay back too little or hiding assets.
- Valuation of Assets: Secured creditors could object if they disagree with how much you say their collateral is worth, which affects how much they’ll get paid under the plan.
If objections come up, you’ll have a chance to address them before the confirmation hearing. As your bankruptcy lawyer in Raleigh NC, we might recommend negotiating with the trustee or creditors, changing your plan, or providing evidence to support your case.
Book a Free Consultation
At Weik Law Office, we understand the stress and isolation that come with overwhelming debt. Attorney Weik has a proven track record of guiding Raleigh residents through the Chapter 13 process, and we’re here to provide the expert support you need to navigate bankruptcy with confidence.
Call Weik Law Office today at 919-845-7721 for a free consultation, and set up a time to speak with one of our friendly professionals. Together, we can help you take the first steps towards a brighter financial future.