Bankruptcy Basics: What Is Confirmation Of A Plan?

by Karen Oakes, Esq.

August 19, 2007

In a Chapter 13 case, the Debtor (the person who filed bankruptcy) proposes a PLAN of reoganization. That Plan spells out who gets paid what. There is an order of payment set out in the Bankruptcy Code. Secured and Priority Claims get paid before unsecured claims. The Debtor’s Plan is reviewed by the Chapter 13 Trustee. The Chapter 13 Trustee then either indicates his approval, disapproval or requests changes in the Plan from the Debtor/Debtor’s attorney.

The next event is the Confirmation hearing, typically set about a month after the Meeting of Creditors. At the Confirmation hearing, the Court either sets a hearing if any creditors or the Trustee still objects or “confirms” the Plan, making the Plan the Order of the Court. Once the Plan is confirmed, all creditors, the Trustee, the Debtor — they are all bound by the Plan.

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I'm a consumer protection lawyer in Oregon, working with people in Klamath; Lake; Jackson; Josephine; Curry; and Deschutes County. I speak regularly on bankruptcy and consumer protection issues nationwide.

Last modified: October 22, 2012