Happy Family Piggyback - WhiteConfirmation is very important in a chapter 13 bankruptcy. Under 11 USC 1325 the bankruptcy court can approve, or confirm, the chapter 13 plan. The chapter 13 plan is usually developed by the debtor and presented to the chapter 13 trustee for his or her approval. If the chapter 13 trustee recommends confirmation of the chapter 13 plan, the bankruptcy judge will usually confirm, or agree to the Chapter 13 plan payments.

The chapter 13 plan usually consist of how the debtor’s debts will be paid through the chapter 13 plan process. In the chapter 13 plan, the debtor’s debts are paid usually with monthly payments by the debtor to the chapter 13 trustee. The chapter 13 plan usually states how much will be paid to each creditor based upon their priority status and their classification as either secured debts, unsecured priority debts, or unsecured debts.

Confirmation of the plan by the bankruptcy judge is an order by the court agreeing with the chapter 13 plan. If the bankruptcy judge does not confirm the plan, then the debtor cannot proceed with the chapter 13 bankruptcy.

In some instances, a creditor may object to the confirmation of the chapter 13 plan. In essence, the creditor is stating the debtor cannot successfully complete the chapter 13 plan, or the creditor is being treated unfairly in the chapter 13 plan. Common reasons for the creditor to object to the confirmation the plan are the feasibility of the plan being successful, or “bad faith” by the debtor.

Without confirmation of the chapter 13 bankruptcy plan by the bankruptcy court, the chapter 13 cannot proceed and will be dismissed. Most adequately prepared chapter 13 plans are confirmed by the bankruptcy judge.