What is a ‘Confirmation Hearing?’

Confirmation hearings are generally 30 - 90 days after the bankruptcy case is filed. Depending on where your bankruptcy petition is filed, it can be months after the 341(a) Meeting of Creditors, or at times, the same day.

While debtors represented by an attorney need not appear at this hearing since their attorney will attend on their behalf, pro se debtors must attend. At this hearing, any interested parties, like creditors, can disclose their position to the court in regards to the pending bankruptcy, plan of reorganization, claims or other matters related to their case. For objecting creditors, the procedure is to file an objection with the court prior to the confirmation hearing.

Issues that come up at confirmation are (1) failure to complete plan payments, (2) lack of proof or payments to secured creditors, (3) infeasibility of plan, (4) inadequate payments under the plan due to proof of claims and (5) missing documents as required under the code. While these issues are common, if they are not completed prior to the Confirmation Hearing, often times the case can be dismissed. Depending on the creditors and trustee’s position, the hearing can be continued to allow for such corrections, but often times need to be completed prior to the hearing in order for a successful plan of reorganization.

Once the plan is confirmed, the debtor is protected under bankruptcy laws and the debtor is required to complete plan payments as provided under the confirmed plan of reorganization. While the debtor is bound to the confirmed plan, changes, modifications and alterations can be made to the plan during its duration should the debtor's financial situation change.