When you file for Chapter 13 bankruptcy, the court expects you to repay your debts over a 3-5 year period to the extent possible, and you will need to submit a Chapter 13 debt repayment plan. This is a proposal that must be confirmed by the bankruptcy court. Until it is confirmed, it is not a permanent plan. At the end of that period, if you have made timely payments and completed your plan, you will receive a Chapter 13 bankruptcy discharge that allows you to start over financially with a clean slate. In some bankruptcy cases, however, interested parties may object to your debt repayment plan, in which case you will need to address and resolve all such objections before the Court can confirm your plan. Experienced bankruptcy lawyer Devin Sawdayi can help those in the Los Angeles and surrounding areas propose and a Chapter 13 which they can afford, and which suits their needs. He can also represent you at your confirmation hearing.Confirmation Hearings in the Chapter 13 Process
All interested parties have a chance to review the debt repayment plan you propose when you file for Chapter 13. Until your debt repayment plan is confirmed by the bankruptcy court, creditors can object to its confirmation. Depending on where a case is filed, a confirmation hearing may be automatically scheduled within an estimated 45 days of your meeting of creditors. A confirmation hearing will always be held when a creditor or a bankruptcy trustee takes issue with one or more terms of the plan.
The creditors most likely to have a problem with your plan are creditors for big items, such as mortgage holders. For example, if you have asked to strip junior liens from your house, and the holder of one of the junior liens disagrees with your appraisal of the house's value, the holder may object.
Similarly, your bankruptcy trustee may object to your plan. A bankruptcy trustee's job is to make sure your plan is compliant with the law and that your creditors are getting adequately repaid. If the trustee believes your plan is not feasible or gives short shrift to creditors, he or she may object.
What happens at the confirmation hearing? The judge will ask why the objecting party has objected, and you will have an opportunity to explain why your plan should be confirmed. Judges may hold an evidentiary hearing if a situation is particularly complex. You and the creditor also have an opportunity to settle the matter informally. It is important to have legal representation through this process so that you do not agree to a new plan that you cannot follow. Failure to follow through with a confirmed debt repayment plan can result in not obtaining the financial relief of a bankruptcy discharge.Seek Legal Guidance when Reorganizing Your Finances in Los Angeles
It is important to have the help of a bankruptcy attorney when you are creating a Chapter 13 debt repayment plan in the Los Angeles area. Devin Sawdayi knows the potential pitfalls of various plan terms and can advise you on whether they are likely to pass the scrutiny of the bankruptcy trustee. If a creditor or the trustee does object, he can represent your interests at a confirmation hearing and persuasively advocate on your behalf. Contact Devin Sawdayi at 310-475-9399 or via our online form to set up an initial meeting.