What is a “confirmation hearing”?
In Texas, a confirmation hearing is the end stage in a creditors rights law proceeding. It is a court hearing, presided over by a judge, where all creditors are given the opportunity to present evidence for or against a proposed plan for repaying creditors. During the hearing, the creditors may question the person proposing the plan, or challenge any aspect of it. The judge will take into account all of the evidence and arguments presented, and then make a decision about whether or not to approve the proposed plan. At the hearing, creditors may argue that the proposed plan does not offer enough compensation, or that it does not treat all creditors equally. Creditors may also argue that the payment terms are too long, or that the proposed plan is not in the best interests of creditors as a whole. The judge will consider all of these arguments in making a decision. In Texas, once the judge has approved a plan, the creditors have the opportunity to vote on it. If creditors representing two-thirds of the outstanding debt vote in favor of the plan, it will go into effect. If the plan is not approved, the court may have to arrange for a different plan to be submitted for consideration.
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