Bankruptcy Confirmation and the Supremacy of the BK

June 24, 2010 - PRLog -- What is Confirmation? This is a common question that my clients ask when they receive a notice in the mail about hearings that are coming up. The confirmation hearing is a process of a Chapter 13 bankruptcy. The confirmation hearing takes place about a month after the meeting of creditors. The purpose of this hearing is to allow creditors to file objections to the way they are being treated in your preliminary plan. If they file an objection, then we resolve it via letter agreement to their terms. Of course we contact the clients first to make sure that they are in agreement with it. If the creditors do not object, then they will get the treatment that we have listed on the preliminary plan.

This is also the time for the trustee to review your case to see if you are able to make your trustee payments based on the income and monthly expenses that you provided. If there are no objections at all, then that means that your case will be confirmed on the face of the preliminary plan that was filed with the courts. If the plan is confirmed with changes, this means that we have some agreements that we have to have reflected on the confirmation order when it is entered.

Debtors do not have to attend these hearings unless instructed by their attorney’s office. Confirmation is a good thing and it is what you want to be able to move on in your case. If you have any questions about the process, check with your attorney’s office.

Many people may not understand that filing a bankruptcy case is a powerful procedure.

By filing a bankruptcy case you are filing in a Federal District Court. This means that the court that the bankruptcy is filed in trumps almost all state level courts and allows clients the ability to delay certain state actions, if not defeat them entirely. This is important when there is a lawsuit filed in state court against a debtor by a credit card company or an individual trying to collect on a debt by way of a judgment. It also helps in preventing garnishments of checking accounts, wages, and seizures of property.

The source of the power lies solely in the Supremacy Clause, better known as the hierarchy of jurisdictions. The most powerful court in our country, and most well known, is the U.S. Supreme Court, followed by the Federal Circuit Courts, the Federal District Courts, and then State Courts. Since bankruptcy cases are filed in the Federal District Court, the filing will supersede any civil filings at the state level. However, if there is a criminal matter at the state level that involves a debtor in bankruptcy, the bankruptcy can not help in most instances. But, when it comes to filing a bankruptcy, some Debtors can be assured that any civil matters held against them at the state level, can be cured by filing a bankruptcy case.

For more information visit http://www.bankrupcy-alternative.com/and-wages.html or call us directly.

# # #

Bankruptcy and Wages distributes information through its network of websites, blogs, newsletters, and press releases.