Inverness bankruptcy attorney explains the money involved in a bankruptcy case. Basically the trustee wants to scrutinize the budget to make sure that you are not living too high on the hog when you are in a repayment plan. The deal is, you have to repay all that you have available for the next 3 to 5 years to satisfy your creditors. You, your attorney, the trustee and the judge are the four parties that are going to be involved in this process. After your meeting with the trustee, there is a follow-up court date called a confirmation hearing date. The confirmation hearing date is the date where you, your bankruptcy lawyer, the trustee and the judge will all be present. And the trustee will be either recommending that your case be confirmed or recommending that your case be denied. If the trustee is recommending that your case will be confirmed, then you are in great shape. The judge is most likely going to approve your repayment plans and is going to be set and solid.
If, on the other hand, the trustee is not recommending your case for confirmation, then you might have to go to a hearing on confirmation. Usually there is a significant reason why the Chapter 13 trustee is not recommending your case for confirmation. One, you may have not submitted all of your disposable income to the trustee. Two, you might have not provided significant documentation to justify your income and expenses. Three, the trustee might have a problem with your actual plan language; you might be preferring one creditor over another or you might be paying attorneys fees to quickly or you might not be paying your auto high enough or with enough interest or something of that nature. If this is the case, you will need to listen to the bankruptcy advice being provided by your lawyer.
At the confirmation hearing, if the parties don’t agree, it will be up to the judge to either confirm the case and confirm the plan or to deny the plan. Now, if the judge confirms the plan, you are good. That’s solid. For the next 3 to 5 years you are going to be making your payments pursuant to that plan. If, on the other hand, the judge does not recommend your case for confirmation and finds that it’s not confirmable, then you’ve got to go back to the drawing board and make modifications to satisfy the Chapter 13 trustee. This is simply part of the process when you file Chapter 13 bankruptcy.