In all Chapter 13 bankruptcy cases a plan must be filed with the Court. The plan explains how debts will be paid in a bankruptcy case. The Court’s approval of a plan is called “confirmation.”
The Chapter 13 Trustee, creditors, or other parties in interest can file an objection to confirmation of a plan. This means that they are asking the Court to deny approval of a plan. This does not mean that the bankruptcy case is over. It is important to continue to make the payments required by the original plan that was filed.
Not providing all of the required documents is a common cause of an objection to confirmation. The Chapter 13 Trustee relies on the required documents, such as proof of income, to determine the accuracy of the information filed with the Court. If these documents are not provided, the Chapter 13 Trustee is likely to file an objection requesting that the Court deny confirmation of the plan. Additionally, the Trustee may also file an objection to confirmation when the Debtor has not filed all required tax returns. In order for a plan to be confirmed, all taxes for the four year period prior to filing a bankruptcy case must be filed. If any of the taxes for those periods are not filed, a plan is not eligible for confirmation. Lastly, a creditor may file an objection to you plan. They may not be happy with how they are being treated in your plan or there may be some other issue regarding the plan. Do not worry, most objections will be resolved with your assistance. Again, continue to make the payments required by the original plan that was filed.
Often, objections to confirmation are easily resolved with the help of counsel. It is very important to maintain contact with your attorney’s office if you receive an objection to confirmation. Your attorney will explain the reason for the objection, develop a plan to resolve the objection, and advocate on your behalf to the objecting party and the Court.
Veronica D. Brown-Moseley is a Shareholder at Boleman Law Firm who began her career as an intern while still in law school. In 2014, Veronica was admitted to the Virginia State Bar and began practicing bankruptcy law as an attorney with the firm. She practices in the firm’s Richmond, Hampton, and Virginia Beach offices. She is the co-founder and a Board member of Brighter Tomorrows Begin Today, a non-profit organization that focuses on helping people achieve their academic and professional goals. Additionally, she is a frequent speaker on consumer bankruptcy law-related issues.
Veronica lives in Chesterfield with her husband and two children. She enjoys kayaking, traveling, and spending time with her family and friends.