How does a Chapter 13 plan get confirmed?

What is the timeline from filing to confirmation?

The early weeks of a Chapter 13 case follow a set order. Your court can change some dates, so read every notice you receive.

1. File the plan with the petition or within 14 days after the petition is filed, unless the court grants an extension. The official plan form is Form 113, and many courts require their own local forms.1 4 5
2. Start making plan payments to the trustee within 30 days after filing the case, even if the court has not yet approved the plan.1 2
3. Attend the meeting of creditors, which the trustee holds between 21 and 50 days after the petition is filed. You answer questions about your finances and the proposed terms of the plan.1
4. Wait for the hearing notice. Creditors receive 28 days' notice of the confirmation hearing and may object.1 3
5. Go to the confirmation hearing, which may be held no earlier than 20 days and no later than 45 days after the meeting of creditors.1 3

What does the plan have to provide for each kind of debt?

A plan provides for payments of fixed amounts to the trustee on a regular basis, typically every two weeks or every month. The trustee then pays creditors under the plan, which may offer some creditors less than full payment. The plan deals with three types of claims.1

Secured claims need particular care. Some recent car loans cannot be reduced to the car's current value, and the federal courts advise consulting an attorney on how to treat secured claims in a plan.7 1

What does the judge check before confirming a plan?

The law lists what the court must find. In plain terms:

• The plan follows the law, and the required fees have been paid.7
• The plan was proposed in good faith, and the case was filed in good faith.7
• You will be able to make all the payments and comply with the plan. This is often called feasibility.7
• Unsecured creditors receive at least as much as they would if your assets were liquidated under Chapter 7.1 7
• You have paid any child support or other domestic support that came due after you filed, and you have filed all required tax returns.7

What objections come up most often?

The federal courts name the most frequent ones: that the plan pays creditors less than they would receive if your assets were liquidated, or that it does not commit all of your projected disposable income for the applicable commitment period.1 3

Timing matters. Unless the court orders otherwise, an objection must be filed and served on you and the trustee at least 7 days before the date set for the hearing.8

If the trustee or an unsecured creditor objects on the second ground, the court may not approve the plan unless it either pays that claim in full or commits all of your projected disposable income for the period to unsecured creditors.7

Problems with a plan are typically resolved during or shortly after the meeting of creditors, and a plan may be modified before confirmation, so an objection is often answered by changing the plan.1 9

What if the judge does not confirm the plan?

You may file a modified plan, or you may convert the case to Chapter 7. If the court instead dismisses the case, the trustee may keep some funds for costs but must return the rest of what you paid in, other than money already paid out or due to creditors.1

Missing the early payments is its own risk. Failing to start timely payments, or failing to make the payments due under a confirmed plan, is a reason the court may dismiss the case or convert it to Chapter 7.1 10

If loan or lease payments such as house and car payments come due before confirmation, you make adequate protection payments directly to the lender or lessor and deduct them from what would otherwise go to the trustee.1 2

What changes once the plan is confirmed?

A confirmed plan binds you and each creditor. The trustee begins distributing the money as soon as is practicable. You make regular payments to the trustee, directly or through payroll deduction, and you may not take on new debt without consulting the trustee.1 10

If your circumstances change, the plan can be changed. After confirmation and before the payments are complete, you, the trustee or an unsecured creditor may ask the court to modify it, for example to raise or lower the payments.1 9

The discharge comes after you complete all payments under the plan and meet the other conditions, including a personal financial management course.1 11 12