New York bankruptcy debtors tend to think that bankruptcy court is just like what they see on television. This would be the standard portrayal of a high-ceiling courtroom with two tables facing the judge, one for the debtor and his or her counsel and one for all the creditors’ lawyers. Then they argue the merits of the case. Naturally, this caricature is inaccurate. Bankruptcy is not like pop-culture depictions of our justice system. The question, though, that debtors may be asking is: When will I need to show up to the bankruptcy courthouse?
Short answer: Rarely.
Less short answer: Mostly just the section 341 meeting of the creditors.
Obviously, debtors’ cases will differ, but when debtors hire experienced New York bankruptcy lawyers, they will spend very little time in court personally. In fact, they may spend more time in their lawyers’ offices than the courthouse. Self-represented debtors, of course, will need to do all their own paperwork, file their cases, and make all required court appearances. Working debtors probably don’t have the time or patience for this, but those assisted by counsel will miss very little work.
Debtors’ most important appearance is the section 341 meeting of the creditors. Mainly, the purpose of this meeting is for trustees to ensure that debtors are whom they say they are. The trustee will ask a handful of questions, and then the debtor will be excused. The bankruptcy judge will not be present, and the whole thing will only take several minutes. (Click here to read about “What Will Happen at My 341 Meeting of the Creditors in New York?“) The most important things to do at the meeting are answer the trustee’s questions truthfully and succinctly, and be polite, i.e. don’t interrupt the trustee. The meeting won’t even occur in a courtroom.
In some cases, debtors might make other bankruptcy court appearances. One notable example is in chapter 7 cases in which debtors sign reaffirmation agreements with secured creditors. Debtors may appear before the judge to stipulate that they can afford the loan’s burden. Another example is in chapter 13. Debtors can appear at their plan’s confirmation hearing so it can go forward. At both of these hearings, debtors’ roles will be very limited, so no need to get nervous.
In short, most bankruptcy debtors spend very little time in court.
Less commonly debtors will appear in bankruptcy court to testify at adversary proceedings. These aren’t necessarily rebutting accusations of debtor wrongdoing. They can be more non-climactic events like establishing the value of a property.
If you are considering filing bankruptcy, then hiring an experienced New York bankruptcy lawyer will certainly reduce your required court appearances.
For answers to more questions about bankruptcy, the automatic stay, effective strategies for dealing with foreclosure, and protecting your assets in bankruptcy please feel free to contact experienced bankruptcy attorney Brooklyn NY Bruce Weiner for a free initial consultation.
