In Chapter 13 what does confirmation of the debtors plan is denied and what do I do next?

Denial of confirmation is not the same as dismissal of the case. In most cases, it means that an amended plan needs to be filed to resolve objections or otherwise cure deficiencies in the original plan. You should discuss the order with your attorney and se what needs to be done to get a confirmable plan.

Chapter 13 plans are more akin to "proposals" which are made and subject to objections by creditors, trustees or 'interested parties'. Once objections to a plan are made, the plan can be revised and resubmitted. There is no penalty for submitting a new plan and often plans need to be revised as creditors are filing claims and other events occur which effect the requirements in the plan. A contract could be rejected or assumed which would affect the debtor's business, or any type of event requiring changes. The beginning months of a chapter 13 are very fluid with events occurring sometimes quite quickly.

You need to set up a meeting with your attorney to discuss the Court's procedure and the filing of an amended plan. Your case has not been thrown out. This happens quite often depending upon where you practice. Chapter 13 cases very rarely look the same from the time the case is file to when it is confirmed. This answer depends upon the procedure employed in your jurisdiction. In our Jurisdiction (Middle District of Florida), the Court will schedule a confirmation hearing. Prior to the hearing, we review our Chapter 13 plans, creditor's proof of claims and whether the client's plan meets the best interests of the creditor's test, disposable income test, liquidation test, etc. Once we believe we are ready for confirmation, we contact the Chapter 13 Trustee's office to see what they are going to propose to the Court. This usually happens a day or so before the confirmation hearing because our Court is extremely busy. If the Trustee has an issue it is discussed or if there is an objection to the plan by a creditor or if there is something wrong wherein the Judge cannot give it his blessing, then the Judge must deny confirmation of the plan on file. This does not mean the case is over and you cannot set forth an amended plan. Your case will continue once the deficiency is cured.

If you do not have an attorney, call the Trustee's office. Ask what needs to bew done to make your plan confirmable in their view. Do NOT ask for legal advice. They can not give that. But they CAN tell you what their office needs in a plan before they will recommend confirnation. Take note of the difference and phrase your question correctly. Be SURE to also ask if there is a time deadline for amending your plan. There is. Finally, keep in mind that the Trustee is really hoping to be able to confirm a plan in your case. After all, they get 10% of what you pay. The Trustee can get worked to death by petitioners without attorneys who think they are saving money. If you don't have an attorney, I would like to assure that life will be much improved if you hire one. Good luck.