In a chapter 13 bankruptcy, the bankruptcy judge must hold a confirmation hearing no later than 45 days after the meeting of creditors to decide whether the plan is feasible and meets the standards for confirmation set forth in the U.S. Bankruptcy Code.
Creditors will receive 25 days' notice of the hearing and may object to confirmation. 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 period.
If the court confirms the plan, the chapter 13 trustee will distribute funds received under the plan as soon as is practicable. If the court declines to confirm the plan, the debtor may file a modified plan. The debtor may also convert the case to a liquidation case under chapter 7. 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 not already disbursed or due to creditors, to the debtor.
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