Bankruptcy Hearing
Bankruptcy Hearing:
Bankruptcy itself is very stressful and depressive for the person who opts for filing a petition for personal bankruptcy as his last resort. However, on the contrary, the bankruptcy hearing in a bankruptcy court is a very uncomplicated and simple matter. The bankruptcy hearing conducted by a bankruptcy court is always short and brief and settles the issue within a few days of filing the petition.
The bankruptcy hearing is not conducted by the bankruptcy court itself. The bankruptcy court normally assigns a trustee for this matter. The trustee calls a meeting of the person who has filed for personal bankruptcy and the creditors of that person. The bankruptcy hearing normally lasts not more than a few minutes in which the trustee asks some basic and mandatory questions to the applicant regarding his assets and liabilities and the overall financial position of the applicant.
The questions normally asked by the liquidator in a bankruptcy hearing are simple and straightforward. These questions are normally directed towards the assets and liabilities of the applicant. Further, the trustee may even ask the applicant regarding any lawsuits that he may wish to file against somebody or somebody may be preparing to file against the applicant. If the creditors of the applicant have agreed to the offer of the applicant regarding the payments of their debts over a long period of time, the additional questions that the trustee may ask in bankruptcy hearing are directed towards the monthly and annual income of the applicant together with the mode of payments to the creditors and also about the terms and conditions of the overall payment plan.
Bankruptcy hearing is extremely important in the sense that, if the person who has filed a petition for personal bankruptcy in a bankruptcy court, fails to attend the bankruptcy hearing on the date the court called for it, the court may dismiss the case altogether which could be even more harmful for the applicant himself.
Bankruptcy hearing is always simple and brief in a case where the person himself has filed for a personal bankruptcy under personal bankruptcy law. However, if the creditors of the person have filed a petition to declare the person insolvent or bankrupt, the bankruptcy hearing will be a little more complex and lengthy. It is better for a person facing such a situation to hire a bankruptcy lawyer to represent his case in the court.
As discussed, bankruptcy hearing is simple and brief in most cases, but the important thing that should be kept in mind is that the bankruptcy itself has several serious consequences on the credit report of the person getting bankrupt. The simplicity of personal bankruptcy hearing and the ease, with which an applicant of personal bankruptcy goes through it, should not motivate a person to file for personal bankruptcy in haste, because bankruptcy has serious consequences which may be harmful for the person’s future life. Thus, it is advisable to think for a thousand times before filing a petition for bankruptcy.
This is an Original Article written by the DefeatBankruptcy.org Staff
and may not be reprinted in any form without prior written approval.
