What Is The Confirmation Hearing?
There are so many different segments to the bankruptcy Chapters that they can become overwhelming and confusing for many individuals. For this as well as many other reasons it is wise to use the services of an experienced a bankruptcy attorney no matter which chapter you are filing for.
The Chapter 13 bankruptcy is a repayment plan and there is a process that one must go through in order for this particular bankruptcy relief to be effective. One part of the bankruptcy that will take place is a 341 meeting of the creditors. Then following this within a 45 day period, it is the obligation of the bankruptcy court to schedule and hold a confirmation hearing.
The purpose of this meeting is to ensure that the bankruptcy plan that has been designed meets all of the standards according to the laws, and to ensure that the debtor it can meet the payment schedule that has been outlined.
This plan is developed according to the circumstances of the individual at the time. However, the courts also recognize that changes can take place in the future and when this happens the bankruptcy plan may have a requirement for modification. It could be that the individual has lost their job or has developed a health condition that no longer allows them to meet their obligations.
If this becomes necessary once again it is important to use a bankruptcy attorney to assist with this to make sure that the modifications are best suited to for the individual that requires them. One thing that is critically important is not to just ignore the change in the financial situation and not to meet the original plan. Taking the proper steps for modification is critically important.