Texas Bankruptcy
Laws & Lawyers 		Define: Texas Chapter 13 Confirmation
Texas Bankruptcy Law Summaries

"Texas Chapter 13 Confirmation"

In Chapter 13 cases, before a plan of reorganization becomes effective, the court must approve, or "confirm" proposed payments to creditors. Without confirmation, cases are either dismissed or converted to Chapter 7. Bankruptcy Judges conduct a confirmation hearing in open court and may solicit sworn testimony from the debtor before approving the plan.

11 U.S.C. §1325(a) provides, in part, "Except as provided in subsection (b), the court shall confirm a plan if - (1) The plan complies with the provisions of this chapter and with the other applicable provisions of this title; (2) any fee, charge, or amount required under chapter 123 of title 28, or by the plan, to be paid before confirmation, has been paid; (3) the plan has been proposed in good faith and not by any means forbidden by law; (4) the value, as of the effective date of the plan, of property to be distributed under the plan on account of each allowed unsecured claim is not less than the amount that would be paid on such claim if the estate of the debtor were liquidated under chapter 7 of this title on such date." A majority of the secured creditors in a Texas bankruptcy proceeding under Chapter 13 must also approve the plan.

Words and phrases used by the court are frequently terms of legal art. In practice, legal terms convey an assortment of requirements for compliance, according to case law, statutes and rules. Although the common usage of a word or phrase may be clear to an average person, legal terminology easily snares unaware pro se debtors because of the complexity of bankruptcy laws. Also be aware, attorneys representing creditors readily sense a pro se debtor's apprehension, and test their knowledge, confidence and compliance. For this this reason, pro se debtors must become their own best advocate, and be capable of defending their right to debt relief according to current laws.

Back to Texas Bankruptcy Courts directory and content.

 
© 2008, all rights reserved, Texas Bankruptcy 1 Com. Updated information for Texas Bankruptcy Courts for Amarillo, Arlington / DFW, Austin, Beaumont-Port Arthur, Brownsville / Rio Grande Valley, Corpus Christi, Dallas, El Paso, Fort Worth, Garland, Houston, Lubbock, Plano, and San Antonio, plus lawyer referral and law firm information about attorneys fee guidelines. For more information, see: Texas Bankruptcy Laws, Courts, Lawyers, Texas Bankruptcy, Texas Bankruptcy Law, Texas Bankruptcy Courts, Texas Bankruptcy Lawyer.