Objecting at a Debtor’s Chapter 13 Confirmation Hearing

 Posted on October 24, 2024 in Bankruptcy

While you can not necessarily stop your debtor from completing the Chapter 13 bankruptcy process, you can file an objection at his or her confirmation hearing. At a confirmation hearing, the repayment plan and each of the petitioner’s debts are reviewed and confirmed. If there is something inaccurate about how your debtor has disclosed what he or she owes you or the value of any collateral involved, you may want to consider filing an objection. If you do not object during the confirmation hearing, you generally lose your chance to object. If one of your debtors is filing for bankruptcy, an experienced Chicago, IL debt collections attorney should review the filing to ensure that your interests are protected as well as possible.

Negotiating a Settlement Out of Court

Ideally, you should try to resolve the dispute with your debtor out of court. If there is a discrepancy between the amount your debtor owes or the value of any collateral and the amount or value he or she reported to the court, it could be simply due to an error. For example, if your debtor has numerous credit cards, he may have mixed up the balances on two of them. If that is the case, the error can readily be corrected.

If there is a legitimate dispute over what amount is owed or whether the repayment plan is adequate, your lawyer can also negotiate with the debtor prior to the hearing and try to resolve the matter out of court. This is often more efficient than asking a judge to rule on the issue and may result in a better outcome. If your debtor is filing for bankruptcy, there is a strong chance that you will not receive complete repayment based on the court-ordered repayment plan.

You will need to be careful to avoid any actions that could be construed as trying to collect on the debt, which would violate the automatic stay that is issued as soon as a person files for bankruptcy. An attorney should handle all communications with your debtor once he has filed for bankruptcy.

Will Objecting Result in Complete Repayment? 

Objecting may or may not result in complete repayment but is likely to increase the amount you ultimately recover. If the issue is a dispute over the amount owed, correcting it may increase the total amount you recover during the debtor’s repayment period. If the issue is that the repayment plan does not adequately protect your interests, the repayment term may be extended so that you can recover more.

Contact a Chicago, IL Objections to Confirmation Attorney

Dimand Walinski Law Offices, P.C. can work to correct any issues during your debtor’s bankruptcy confirmation hearing. Our experienced Cook County, IL objections to confirmation lawyers will fight to block confirmation if your interests as a creditor are not adequately protected. Contact us at 312-704-0771 for a confidential consultation.