Do creditors vote in Chapter 13?

Do creditors vote in Chapter 13?

• A. No, they do not vote but may file objections
• B. Yes, they vote to accept
• C. They vote only on feasibility
• D. They vote on status

Answer: (A)

In Chapter 13, creditors don’t vote on the plan. The debtor proposes a repayment plan, and the plan is submitted to the bankruptcy court for confirmation. Creditors can file objections to the plan or its confirmation if they believe it isn’t feasible, doesn’t treat claims properly, or doesn’t meet other statutory requirements, but they don’t cast ballots to approve the plan. The judge reviews the plan (and the trustee administers payments) and confirms it if it meets the required standards. The other ideas—voting to accept, voting on feasibility, or voting on status—don’t fit how Chapter 13 confirmations work, since creditor participation is by objection, not by a vote.

In Chapter 13, creditors don’t vote on the plan. The debtor proposes a repayment plan, and the plan is submitted to the bankruptcy court for confirmation. Creditors can file objections to the plan or its confirmation if they believe it isn’t feasible, doesn’t treat claims properly, or doesn’t meet other statutory requirements, but they don’t cast ballots to approve the plan. The judge reviews the plan (and the trustee administers payments) and confirms it if it meets the required standards. The other ideas—voting to accept, voting on feasibility, or voting on status—don’t fit how Chapter 13 confirmations work, since creditor participation is by objection, not by a vote.