Confirmation is an important step in Chapter 13 bankruptcy

Most people have some amount of debt. In many cases, the debt is positive in that parties have taken out loans for houses or vehicles, but in other situations, people can easily accumulate a substantial amount of other, less helpful debts, such as credit card debt or outstanding medical bills. You may land in the latter group of individuals who have considerable debt and feel that it will act as a burden for the rest of your life.

Luckily, you can take steps to reduce or even completely eliminate your outstanding debt through various means. One option in particular is Chapter 13 bankruptcy. If you have a steady income, you may qualify for this repayment and restructuring option. However, you will need to come up with a repayment plan and have that plan confirmed by the court.

Your plan

You may feel intimidated by the idea of having to come up with a plan to repay your current liabilities. Fortunately, you can learn more about what could make up a successful plan and also gain the necessary and desired help for creating your proposal. Certain aspects that need addressing in your plan include the following:

  • The creditors you expect to pay back
  • When you plan on paying those creditors
  • How much of the owed balances you intend to pay

All of this — and other — information plays an important role in your proposed plan because the court needs to believe that you have the intention to seriously address your debt through Chapter 13 bankruptcy.

Confirmation

The court sets a date for a confirmation hearing, during which you or your legal representation will present your proposal. It could take up to 60 days for this hearing to take place because much information could change during the first stages of filing for bankruptcy. This window allows for those changes to occur before the process gets officially underway.

Once the court issues a confirmation order for your proposal, you can begin working toward repaying your debts over the next few years. However, after receiving your confirmation, you must stick to the plan.

You may worry that you do not have the understanding or means to create a proper repayment plan for Chapter 13 bankruptcy. Before you dismiss this as a viable option, however, you may want to explore your options for gaining assistance. Enlisting the help of a bankruptcy attorney could give you the chance to learn more about this bankruptcy option as well as give you an advocate to help you successfully navigate every part of the process.

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