Texas Bankruptcy: A couple times a month I get a phone call or email from a client in distress because they received a copy of an objection to confirmation or a motion to dismiss their bankruptcy case. I have mixed feelings about these types of phone calls and emails. I am slightly frustrated, because during my meeting with each chapter 13 client, I tell them that they will receive these types of documents from the court and I explain what they mean. On the other hand, I am also pleased that my client has taken an interest in making sure their case succeeds, that they are reading the documents they receive from the court, and care enough to contact me to ask for an explanation. Usually the latter feeling of satisfaction with my client outweighs the former irritation with being called to explain what has already been explained. I have noticed that the clients that call me with these types of questions are also the same clients that tend to be successful in bankruptcy, complete their chapter 13 plan, and receive a discharge.
I have gotten off topic. The purpose of this article is to explain the meaning of an objection to confirmation and a motion to dismiss. Objections to confirmation are filed by creditors and the chapter 13 trustee when they want documents filed or amended or changes made in the debtor’s plan. These types of objections occur in almost all chapter 13 cases. In most cases, the debtor’s attorney will resolve these objections by filing additional documents, amending the documents already filed, or working out some type of agreement with the trustee or the creditors. Objections to confirmation rarely result in the bankruptcy case being dismissed.
Motions to dismiss are usually filed by the chapter 13 trustee and are filed for many different reasons. The most common reason for these motions is that the debtor is not making payments timely under the chapter 13 plan. When this occurs, the debtor has several options for curing the delinquency so that the case can continue, including making additional payments or modifying their chapter 13 plan. Motions to dismiss are also commonly filed for failure to provide documents to the trustee or when a plan takes too long to confirm. Debtors who receive these types of motions should consult their attorney to determine the best way to keep their case from being dismissed.
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