When you file for Chapter 13 Bankruptcy in Maryland you begin a process that typically takes between 3 to 5 years to complete. The Chapter 13 Bankruptcy process also involves proposing a plan to repay some or all of your creditors. Your repayment plan must be confirmed by the bankruptcy court before it can be finalized, and before it is finalized your creditors can object to the terms. This all occurs in what is known as a Chapter 13 Bankruptcy Confirmation Hearing.
What is a Chapter 13 Confirmation Hearing?
A Chapter 13 confirmation hearing affords all interested parties (including your creditors) a chance to review your repayment plan and decide whether they believe it is a fair repayment plan. If a creditor or the bankruptcy trustee assigned to your case has a problem with your repayment plan, they can object to its confirmation during this time. If there is an objection to your repayment plan, the judge in your case will decide what is fair at the confirmation hearing.
Why would a creditor object to the repayment plan?
If a creditor’s representative feels that the amount you have agreed to pay is not enough, they can object to your repayment plan. In many cases mortgage lenders and vehicle lenders object when they feel a plan will not cover how much you owe or in the case of a vehicle lender, how much your car is worth.
Why would a trustee object?
The job of a trustee is to make sure your case is within the spectrum of existing bankruptcy laws. He or she will review all your income and expenses, then use that information to determine whether you plan to pay enough to adequately repay your creditors.
About the Law Offices of Nicholas J Del Pizzo
At the Law Offices of Nicholas J Del Pizzo we help clients find the debt relief they need. Reduce the stress and stop the foreclosure process on your home. We can help. For more information or to schedule an appointment with an experienced Baltimore Bankruptcy lawyer please call our office or visit our contact us page.