In a Chapter 13 bankruptcy, the Chapter 13 trustee is going to examine the debtor as he is present with his Long Grove bankruptcy attorney to make sure that he is providing all of his disposable income towards the Chapter 13 repayment plan. After the 341 meeting of creditors in a Chapter 7 case, there is a two month waiting period where creditors have the right to object to the discharge in total or to a particular debt. Once that two month waiting period has elapsed, the debtor will be granted a discharge in bankruptcy. After filing the Chapter 7 bankruptcy case but prior to discharge, the debtor must complete a two hour financial management class as part of the bankruptcy process. If the two hour financial management class is not completed by the debtor prior to the date of discharge, then the case will close without a discharge by the clerk of the U.S. Bankruptcy Court.
If a case is closed without a discharge, that means that the case has basically gone through, however the debtor did not get the relief that he originally sought. In many instances we have to reopen a bankruptcy case to allow for the filing of a two hour financial management class which then will trigger an actual discharge. So in Chapter 7 it’s not enough just to go to your 341 meeting, you must complete a two hour financial management class prior to the case going to discharge. In a Chapter 13 bankruptcy case after the 341 meeting of creditors there will a confirmation hearing date. The confirmation hearing date is a date before the judge where the trustee, the debtor’s bankruptcy lawyer will appear before the bankruptcy court and try to get the payment plan proposed under Chapter 13 approved. Many times the Chapter 13 trustee will recommend that the case be confirmed, no creditors will object, and the court will approve and enter in the bankruptcy plan.
In other cases the Chapter 13 trustee will step up in court and request that confirmation be denied by the court. The reason for the denial may be the debtor’s inability to make timely payments. Another reason why the trustee might not recommend confirmation is that the debtor is not providing all the documentation or amendments that the Chapter 13 trustee had requested. In any event, if the trustee is not recommending the case for confirmation, then the debtor’s attorney can ask that the matter be put over for two to four weeks to enable the debtor and/or the debtor’s attorney to get the proper documents filed or provide the proper documentation. Once the case is either confirmed by the trustee and the judge or if the case is dismissed, the debtor does have the ability to re-file another Illinois bankruptcy case unless barred.