An important part of the Philadelphia Chapter 13 Bankruptcy Plan Confirmation Process is the hearing on your plan. The confirmation hearing is when the Court decides whether or not to approve the Chapter 13 Plan that has been prepared by the debtor or his or her attorney.
In the Philadelphia Chapter 13 Bankruptcy plan confirmation – the goal is to get a plan approved in which you propose to pay some, all or only one of your creditors.
The Chapter 13 Plan has laid out the debtor’s repayment plan providing for the order in which to repay debts such as back real estate taxes or back mortgage for a property which the debtor is keeping, car payments for which a debtor is keeping, and providing for credit cards, personal loans, pay day loans, charge cards, medical bills and other unsecured debts which are usually paid last. In most cases very little or even no monies are paid on the unsecured debts.
The Chapter 13 Standing Trustee has already reviewed the debtor’s plan. If the plan
a) Meets the requirements of the bankruptcy code
b) The plan provides for the appropriate payments to the creditors based on their allowed claims
c) The debtor has made all of the payments
Then the trustee will usually recommend confirmation of the debtor’s Chapter 13 Plan to the Bankruptcy Court.
If the trustee does not recommend confirmation, the normal process is to put together another plan. For example if you are $5,000 in arrears on your mortgage, and you only propose to pay to $1,500 over a period of 36 to 60 months towards the arrears – the trustee will generally say that your plan is not feasible. The mortgage company may also object to the Chapter 13 plan since it is not paying back the correct amount of mortgage arrears.
Your new plan would propose to pay the $5,000 arrears on the mortgage. A new confirmation hearing is then scheduled. If the trustee is satisfied he or she will recommend confirmation of the plan. Based on the trustee’s recommendation, the Bankruptcy Judge will normally enter an order approving and confirming the Chapter 13 Plan.
Our office has successfully helped thousands of families to file a Chapter 13 Bankruptcy Petition and get their plan approved.