What to Do if a Creditor Objects at Your Confirmation Hearing

 Posted on October 28, 2024 in Bankruptcy

One of the final stages of a Chapter 13 bankruptcy is the confirmation hearing. At the confirmation hearing, the court will review your repayment plan to ensure that it meets the legal requirements. Your creditors will have the right to object at this hearing if they feel that their interests are not being adequately protected. If any of your creditors object, you will need to either negotiate with your creditor to resolve the issue out of court, or fight to convince a judge that your proposed repayment plan should be accepted. If you suspect that one of your creditors will object at your confirmation hearing, it is especially important to have a skilled Houston, TX bankruptcy lawyer representing you.

Involve a Bankruptcy Lawyer Immediately

If you had been planning to represent yourself throughout your bankruptcy proceedings, this plan may no longer be feasible. Objections at the confirmation hearing can create serious legal barriers to completing the bankruptcy process, at least in a way that is ultimately beneficial to you. Your creditor is almost certainly represented by counsel, and you should be too. An attorney should handle all communications with your creditors going forward, as he or she is in a better position to negotiate or address legal threats.

Addressing a Trustee Objection 

It may be your bankruptcy trustee, rather than a creditor, who objects. There are two main reasons why the bankruptcy trustee might object. The first is that he or she does not believe that you will be able to make the proposed monthly payments based on your income and expenses. The other is that he or she thinks you should be paying more. If it is the latter reason, you should know that your bankruptcy trustee may have a financial interest in maximizing your payments. Your attorney may need to litigate this issue.

Addressing a Creditor Objection 

When a creditor objects, it is nearly always because the institution does not feel that it would be paid back a sufficient amount. Sometimes, this is because you and the creditor disagree on how much you owe. It may also be because you owe a large amount to that creditor, and the creditor has realized that it would be paid back far less than you owe. However, this is a feature of bankruptcy. Your attorney might be able to negotiate with the creditor to resolve this dispute.

Contact a Harris County, TX Chapter 13 Bankruptcy Lawyer 

If you face objections at your Chapter 13 confirmation hearing, The Fealy Law Firm, PC can help. Experienced Houston, TX bankruptcy litigation attorney Vicky Fealy will work to resolve the dispute in your favor. Contact us at 713-526-5220 for a complimentary consultation.