The confirmation hearing is a date set by the court to approve the plan. When filing Chapter 13 bankruptcy two dates are set for hearing. The first is the 341 hearing also known as the First Meeting of Creditors. The purpose of the first meeting is to allow the Trustee and creditors to question the Debtor about information pertaining to the case. The second hearing is the confirmation hearing. This hearing if set to approve or confirm the plan. Creditors and the Trustee in the Chapter 13 have 21 days after the first meeting of creditors to object to the plan.
Objections to confirmation may arise for a number of reasons. For creditors it is usually because a secured creditor objects to the value of their collateral and the amount they will receive. More often it is the Trustee who will file an objection. The Trustee acts as a super creditor and other creditors frequently rely on the Trustee to voice any objections they may have. There are a number of reasons that a Trustee may file an objection. Some of the most common objections revolve around the Debtor’s ability to make payments in the Chapter 13 bankruptcy plan. The Trustee may challenge the Debtor’s income as being higher than estimated or the Debtor’s expenses as being excessive. Most objections can be resolved though compromise. If an objection is not settled, the Judge will conduct a hearing on the objection to resolve the matter. This is the purpose of the confirmation hearing.