Confirming a Chapter 13 Plan in New York City?
In a Chapter 13 bankruptcy the bankruptcy petitioner will agree to make regular monthly payments to the bankruptcy trustee in order to repay some portion of the debt owed to their creditors. Before a Chapter 13 bankruptcy filer can get started with their monthly payments their Chapter 13 repayment plan must be submitted and confirmed by the bankruptcy court in New York City. Until the plan is confirmed creditors may object to its terms, so about 30 days after the plan is filed the bankruptcy petitioner must attend a meeting with the bankruptcy trustee and possibly some of their creditors.
Also known as the 341 Meeting of Creditors, the first meeting is informal and brief attended by the petitioner and their bankruptcy attorney, along with the trustee and possibly some of their creditors. The bankruptcy trustee assigned to the case will be present, but creditors only rarely come to the 341 meetings. Creditors are not under any legal obligation to attend the meeting of creditors, and most simply do not have the time or resources to bother with a Chapter 13 objection. If the bankruptcy attorney has helped devise a reasonable repayment plan from the beginning, then at most 341 meetings only the trustee, the petitioner and their attorney will be present. While the bankruptcy filer will testify under oath to the accuracy of their petition, the meeting itself is not in a courtroom with a judge, jury or other people in the room. The meeting gives the trustee and any possible creditors a chance to object to the repayment plan and ask questions about its accuracy. With the right attorney an objection from a creditor is rare, but the bankruptcy trustee might sometimes have objections of their own. After a 341 Meeting of Creditors the bankruptcy trustee may object to the petitioner’s repayment plan even if the creditors do not. Discrepancies between testimony at the meeting and the submitted petition, as well as a general lack of funding towards the plan are the most common objections a petitioner may face from a bankruptcy trustee in New York City.
Even if no objections have been filed the next step for the bankruptcy petitioner is the Bankruptcy Confirmation hearing. At the confirmation hearing the debtor and any objecting creditors or an objecting trustee will have a chance to explain their case to the bankruptcy judge. If there are no objections the judge may still have questions for the petitioner before officially confirming the Chapter 13 plan. Unlike the meeting of creditors the Confirmation Hearing is in a courtroom, but typically lasts only a few minutes. With the right bankruptcy attorney working through any possible issues ahead of time the hearing will be very low on drama. The Chapter 13 case and official repayment plan is settled when the bankruptcy judge in New York City officially confirms the plan.
The Chapter 13 confirmation process is not as scary as many people think. With the right attorney it is relatively straight forward and low stress. Don’t let the fear of a couple of brief meetings keep you from the financial fresh start you deserve. Most clients are pleasantly surprised to hear how fast a Chapter 13 bankruptcy can help. If you live in New York City contact the Law Offices of William Waldner online or at 212.244.2882 to arrange a free consultation today. We only practice bankruptcy law and maintain a 99% Chapter 7 bankruptcy discharge record in New York City as of 9/11/2015.
**** DISCLAIMER: This article is intended for educational purposes only. By reading no attorney-client relationship has been created. Prior results do not guarantee a similar result for future clients. Attorney Advertising. We are a Debt Relief Agency, we help people file for Bankruptcy.