In Chapter 13 bankruptcy, creditors do not vote on the proposed payment plan. Instead, the court will confirm a plan if it meets the requirements of the bankruptcy code, regardless of whether the creditors object to it or not. However, creditors do have the right to object to the plan on a legal basis if they believe that it does not comply with the bankruptcy code.
The purpose of Chapter 13 bankruptcy is to allow individuals to reorganize their debts and make a payment to a trustee once a month for 3 to 5 years. The trustee uses this payment to pay back secured debts, such as mortgage arrears and car loans, as well as non-dischargeable taxes. Any remaining funds are then used to pay back unsecured creditors.
Creditors do not have to approve the proposed payment plan, but they do have the right to object to it if they believe that it does not meet the requirements of the bankruptcy code. If a creditor objects to the plan, the court will need to consider their objections and determine whether the plan meets the requirements of the code. If the plan is confirmed by the court, the creditors will be required to accept the payment plan and to stop any collection activities.