Most bankruptcy cases are nothing like the scenes shown on TV. There are no witnesses, no jury, and you don’t have to explain yourself in front of many people. While the court oversees the bankruptcy process, debtors are not actually on trial for anything because having debt is not a crime. The role of the court is to evaluate the details and facts of your financial situation and make sure that creditors get the payment.
Depending on what you declare, filing for bankruptcy will require you to attend several hearings before the case is settled. Bankruptcy attorneys in Sherwood and Little Rock share the things you can expect in a bankruptcy hearing:
Meeting of Creditors
Judges aren’t always a part of the bankruptcy proceedings. The court will appoint trustees to administer and manage the case. They will review and evaluate your financial statements and manage a meeting of creditors. The purpose of the meeting is to let the trustee and creditors ask you questions regarding the details declared on your financial statements. Most bankruptcy attorneys in Little Rock say that the majority of the questions will involve assets, debts, expenses, and income.
Depending on the Case
For Chapter 7 bankruptcies, the trustee will identify all nonexempt assets and sell them to raise the money needed to pay creditors back. In case you have secured debt like a car loan, you may need to reaffirm the debt if you want to keep the car. For Chapter 13 cases, however, the trustee will collect all financial records and make sure the repayment strategy is fair to all creditors.
Lawyers Are Your Best Friend
Although it is possible to prepare and file all bankruptcy papers without an attorney, bankruptcy courts highly recommend hiring a lawyer. It is extremely difficult to file a case successfully without an attorney making sure that all your debts are properly discharged and listed. Legal counsel will help ensure you do not miss filing deadlines and prevents you from taking actions that could lead to bankruptcy fraud.
Bankruptcy proceedings involve the court determining the most appropriate method for satisfying creditors without stripping you of necessities.