Browse terms
Chapter 13 plans
Confirmation
Confirmation is a bankruptcy judge's approval of a plan. In Chapter 13, it is the court's approval of the debtor's repayment plan. 1
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The judge must hold a confirmation hearing no later than 45 days after the meeting of creditors and decide whether the plan is feasible and meets the legal standards. Creditors get 28 days' notice and may object. 2
The court must confirm a plan that meets the requirements. Among them: the plan was proposed in good faith, unsecured creditors receive at least what they would in a Chapter 7 liquidation, secured claims are treated in a way the law allows, the debtor will be able to make all the payments, and required tax returns have been filed. 3
Payments do not wait for confirmation. The debtor must start paying the trustee within 30 days after filing, even if the plan has not yet been approved. 2
A confirmed plan binds the debtor and each creditor. If the court declines to confirm, the debtor may file a modified plan or convert the case to Chapter 7. 2
Common questions
What happens to the money I paid if the case is dismissed before confirmation?
The trustee must return the remaining funds to the debtor, other than funds already disbursed or due to creditors. The court may let the trustee keep some funds for costs. 2
Is confirmation the same as discharge?
No. In Chapter 13 the discharge comes after the debtor completes all payments under the plan. 2
Sources
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