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Some common reasons creditors object to Chapter 13 plan confirmation include: Disagreement about the outstanding balance on the debt. Disagreement about the past-due amount. Objection to a cramdown of an automobile loan.
If the trustee wants to object to your plan, he or she will typically file a written objection to confirmation with the court and set forth the reasons why the court should not approve your proposed plan. If you dont respond to the trustees objection, most courts will not confirm the plan.
In a Chapter 13, an objection to confirmation is basically a written statement from the Chapter 13 Trustee or a creditor of the debtor that there is something wrong with the case that needs to be fixed before the confirmation hearing.
The bankruptcy trustee assigned to the case and any of the creditors seeking repayment can file objections to the debtors proposed plan.
If the court declines to confirm the plan, the debtor may file a modified plan. 11 U.S.C. 1323. The debtor may also convert the case to a liquidation case under chapter 7. (4) 11 U.S.C. 1307(a).
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