When you file a Chapter 13 bankruptcy your creditors will receive a copy of the bankruptcy plan, which will contain information on how their claim is being treated. For example, if the claim will be paid through the plan, outside of the case and paid directly, surrendered, or treated as unsecured.
If a creditor feels they deserve better treatment through the case or if they are not being accounted for properly, they may object to your plan. For instance, say you are catching up on mortgage payments you are behind on through the bankruptcy, but when you filed you estimated the past-due balance incorrectly. The mortgage company may file an objection to the plan because they are not being paid the full amount of their arrears.
Objections will always list the details of why the creditor disagrees with your proposed plan. When an objection is filed, your attorney will go through the objection with you and propose ideas for resolution. If there cannot be an agreement by both parties (you and the creditor) on how to handle the claim, at the confirmation hearing for your case (where the judge orders your plan), both sides can be heard on the objection.
In my experience, most objections can be resolved without needing to attend a hearing. Most commonly creditor objections stem from incorrect amounts on the plan, improper treatment on the plan, or a disagreement on terms. Most of these can be very easily resolved in a modified plan.
If you have questions about bankruptcy and would like to do a free consultation to go over your options, visit www.lifebacklaw.com to speak with an attorney. You will be glad you did!