Bankruptcy Court Not A Popular Destination
For many people the thought of going to bankruptcy court is an admission of failure in being able to handle their personal finances. However, circumstances sometimes arise that force a person to face some difficult decisions. Illness accompanied by high medical bills, the loss of a job or simply getting in way over their head may lead to a trip through the bankruptcy court in order to get their financial house back in order. New bankruptcy laws cannot only help a person get back on their feet but can teach them better financial management to prevent a repeat of the current situation.
When a person comes to the conclusion that the only way out of a financial mess is to declare bankruptcy, they should visit an attorney specializing in bankruptcy court proceedings. While it is possible to fill out all the required forms and file them with the court on their own, to insure everything goes in accordance with the federal laws on bankruptcy it is advised that a bankruptcy attorney be contracted.
There are certain procedures to be followed in bankruptcy court and in preparation for appearance, all the right forms have to be in the right order to prevent the petition for bankruptcy relief from being rejected by the court.
Chapter Chosen Will Determine Proceedings
In most cases of Chapter 7 filings, bankruptcy court proceedings go smoothly, provided everything is in order and none of the individual's creditors are present to object to their inclusion in the discharge. When a creditor does object, usually the petitioner and their attorney will meet with the creditor and a court trustee to reach a decision on whether or not the entire debt should be discharged.
Once an agreement is reached, everyone returns to bankruptcy court where the judge will issue the final decree. In many instances, the trustee will reject any objections if the creditor failed to file prior to the court date. If they do file an objection and fail to show up for the hearing in bankruptcy court the objection is generally dismissed. If the creditor has evidence that the debtor is hiding assets or income, the petition may be thrown out of court.
Once the proceedings in bankruptcy court are completed, there is still a waiting period before all of the debts are discharged. It can take as long as six months for the order to be finalized, but once the discharge has been approved in bankruptcy court, the debtor can be considered free of debt and the creditors cannot make any additional contact.
