You are planning to file for bankruptcy and are wondering if you will have to make a court appearance.  The answer is no; not in the traditional sense.  However you will be required to attend a special meeting.

Anyone who files a bankruptcy petition, whether Chapter 13 or Chapter 7, must attend what is referred to as a first meeting of creditors.  Additionally, in a Chapter 13 filing, you may also be required to attend a confirmation hearing.  Typically, the first meeting of the creditors is three to six months after filing a petition for bankruptcy.  The meeting is generally conducted by a bankruptcy trustee rather than a judge.  The meetings are also less formal than a courtroom hearing and usually take place in a conference room.

The meeting will take place typically around 30 days after your filing date.  The meeting itself does not take long, but you may be scheduled with other debtors the same date and time so there may be down time waiting for your case to be called.  Like in court, failure to attend a meeting may result in a dismissal.

You will be asked to provide certain documentation before or after the meeting.  These items may include tax returns or pay stubs to verify the information in your petition.

The Meeting

The trustee will administer an oath asking you to swear to answer all questions truthfully.  The questions asked will be to verify information in your petition to discover if it is complete and accurate.  The trustee will ask for clarifications on amounts misunderstood, or to understand why you arrived at a certain dollar amount for specific assets.

At this meeting your creditors are entitled to attend and ask you questions. Typically, however, creditors will instead contact your attorney to get information.  Creditors usually only ask questions where there is suspicion of fraud or concealment of property.

Confirmation Hearing

Some bankruptcy courts require debtors and their lawyers to attend confirmation hearings in Chapter 13 cases.  Come only require attendance if a creditor is objecting to the confirmation of your Chapter 13 plan.  They may object if they believe you proposed a plan payment too low, or that you will be unlikely to make the payment.  If a confirmation hearing is held, it is typically within 45 days after the meeting of the creditors.

Adversarial hearings can be held when a creditor objects to your discharge of a debt.  They may object if they believe you have committed fraud or are not entitled to discharge for some reason.

Bankruptcy is complex and many answers depend on the specifics of each individual’s situation.  It is important to have a lawyer who can walk you through each step and who can respond to creditors’ inquiries so that you can focus on a fresh start.  If you are facing bankruptcy and are located in Danville or surrounding counties, please call our office.  Attorney Christopher L. Arrington can answer your questions.