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Chapter 13 bankruptcy—confirmation hearing

No later than 45 days after the meeting of creditors, the bankruptcy judge must hold a confirmation hearing and decide whether the plan is feasible and meets the standards for confirmation set forth in the Bankruptcy Code. Creditors will receive 28 days' notice of the hearing and may object to confirmation.

While a variety of objections may be made, the most frequent ones are that payments offered under the plan are less than creditors would receive if the debtor's assets were liquidated or that the debtor's plan does not commit all of the debtor's projected disposable income for the three or five year applicable commitment period.

In Texas, as in all states, the process of confirming a bankruptcy plan is governed by federal law under the Bankruptcy Code. After the meeting of creditors, also known as the 341 meeting, the bankruptcy judge is required to hold a confirmation hearing no later than 45 days later. During this hearing, the judge will determine whether the proposed repayment plan is feasible and meets the necessary legal requirements. Creditors are given a 28-day notice before the hearing and have the right to object to the plan's confirmation. Common objections include arguments that the plan provides less payment than what would be received through liquidation of the debtor's assets or that the plan fails to allocate all of the debtor's projected disposable income over the required commitment period, which can be either three or five years depending on the circumstances. It is important for debtors to work closely with their attorney to address these objections and to ensure that their plan complies with the Bankruptcy Code.

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