If you have been considering filing for bankruptcy as a way to eliminate your debts, you are probably wondering what the process of filing for bankruptcy is like, whether you will be required to go to court and what that entails. In every bankruptcy case, there is a “meeting of creditors” required by § 341 of the Bankruptcy Code. The meeting of creditors is not “court” exactly, in that there is no judge, and no rulings or orders are made. The meeting of creditors is conducted by the bankruptcy trustee appointed in the case. In Chapter 7 bankruptcy cases, the trustee is appointed to review the circumstances of the bankruptcy filing and liquidate any unexempt assets that may be available to pay creditors. In Chapter 13 Bankruptcy, the trustee’s job is to ensure the debtor has complied will all of the bankruptcy requirements and that their plan can be approved, but they do not liquidate or take possession of, any of your property.
During the meeting of creditors, the debtor (the person or company that filed for bankruptcy”) is required to answer questions under oath about their assets, debts, income, and financial history. The purpose of this questioning is not to shame or embarrass the debtor for filing bankruptcy, but to ensure that they have honestly disclosed all their property and to evaluate whether any assets are available to creditors. Although creditors are invited to appear and ask the debtor questions at the meeting of creditors, they very rarely do and most of the meetings are simply between the debtor, their attorney, and the bankruptcy trustee.
Prior to the Covid-19 Pandemic, the meetings of creditors were held in meeting rooms at the Bankruptcy Courthouse in Boston, the United States Trustee’s Office in Worcester, or for people on the Cape and South Coast, at the Social Security Administration building in New Bedford. However, since the beginning of the pandemic, the meetings of creditors have been conducted telephonically. As of now, there is no plan to return these meetings to in-person. In most bankruptcy cases, the meeting of creditors is the only formal proceeding you will have to attend. Once the meeting of creditors is held, most debtors will receive their discharge approximately 60 days later. It is only in the very rare cases where there is an objection to a debtor’s discharge and a trial must be held to determine whether the Debtor should be granted a discharge that they must actually appear in court in front of a judge. But again, this is very rare and is usually avoidable with proper planning and preparation.
If you are struggling to pay debts and would like to learn more about how bankruptcy can help you get a fresh start, call the Lipton Law Group today at 508-202-0681 for a free consultation.