THE CHAPTER 13
PLAN AND CONFIRMATION HEARING (Page
No later than 45 days after the meeting of
creditors, the bankruptcy judge must hold a confirmation hearing
and decide whether the plan is feasible and meets the standards
for confirmation set forth in the Bankruptcy Code. 11 U.S.C. §§
1324, 1325. Creditors will receive 25 days’ notice of the
hearing and may object to confirmation. Fed. R. Bankr. P. 2002(b).
While a variety of objections may be made, the most frequent ones
are that payments offered under the plan are less than creditors
would receive if the debtor’s assets were liquidated or that the
debtor’s plan does not commit all of the debtor’s projected
disposable income for the three or five year applicable commitment
If the court confirms the plan, the chapter
13 trustee will distribute funds received under the plan “as
soon as is practicable.” 11 U.S.C. § 1326(a)(2). If the court
declines to confirm the plan, the debtor may file a modified plan.
11 U.S.C. § 1323. The debtor may also convert the case to a
liquidation case under chapter 7.4 11 U.S.C. § 1307(a). If the
court declines to confirm the plan or the modified plan and
instead dismisses the case, the court may authorize the trustee to
keep some funds for costs, but the trustee must return all
remaining funds to the debtor (other than funds already disbursed
or due to creditors). 11 U.S.C. § 1326(a)(2).