Your Appearance in Bankruptcy Court

Your Appearance in Bankruptcy Court

Judges are not allowed to be present at your creditors’ meeting. As a result the trustee runs the show and the rules can be rather flexible. You are always free to consult with your attorney at any time during the questioning. Your attorney also has the right to interject clarifying remarks when necessary. This is not an inquisition, it’s just an information gathering session.

Chances are there will be several other filers waiting in line. The trustee may appear rather bored, as he is required to repeat the same set of questions over and over. You should concentrate on blending in with the whole procedure as much as possible. Don’t make waves or get into debates.

Though the law does not require it, some trustees may ask you to surrender all your credit cards at some point in the proceeding. (They are only required to do so for those creditors who specifically demand that their cards be returned) If you plan to keep one or more of your cards, make this intention known to your lawyer before the meeting begins. (These are the cards you paid off in anticipation of your filing).

Schedule your court appearance carefully. Discuss this important subject with your attorney. If he doesn’t mention the following – you bring it up. The best times are just before Christmas or on a Friday just before a holiday weekend or during July or August in the middle of the vacation season.

Have your attorney sit down and prepare you for each court appearance. Be sure to discuss all questions you may be asked. Try to anticipate the unexpected as much as possible. You don’t want any surprises at this stage of the game.

Should a repossession agent show up to repossess an asset inside your home, you can legally refuse them access to your residence. The only way they can prevail is to go to a court and obtain a court order. Few creditors will bother. Especially if there’s an automatic stay in effect.

I would be remiss if I didn’t include a short note about what can go wrong at this point. When you get to court, you will be placed under oath and asked a series of detailed questions regarding your financial situation.

Be very careful. This is no time for playing games. If the trustee comes to feel that you are not being completely honest he can do some rather unpleasant things to you. First he may forward a recommendation to the court that the discharge of your debts be disallowed. But it gets worse. He may also report your suspected deception to the U.S. Attorney for federal prosecution! So the motto here is - be honest! Make every effort to appear open and fully cooperative.

You should know that a chapter 13 bankruptcy routinely requires anywhere from three to six or more court appearances. If the court-appointed trustee suspects you’re concealing assets, you may be in store for some lengthy and probing questioning.

But if your paperwork appears neat, clean and in order there may be few questions. Your creditors also have the right to question you during your appearances. Any recent substantial spending or luxury purchases will come under a microscope. (Usually only spending during the past year will be examined)

Long ago, your attendance at a discharge hearing was a requirement. This is no longer true. Today you’ll probably just receive a computerized list and form letter from the court listing your discharged debts.

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