Filing Bankruptcy: What Is The Biggest Misconception?

detroitBANKRUPTCYcourtFolks are afraid to file bankruptcy.   (part two is here: Filing Bankruptcy)     

Does not matter if it is a Chapter 7 wipe

out the debts bankruptcy, or a Chapter 13

payment plan bankruptcy. My clients think

it is bad, it is wrong, that it is a punitive

process.

Balderdash!

When you enter the bankruptcy system, by filing your bankruptcy case, you are not entering a world of finger pointing, shaming,judgmental people who think you are the scum of the earth.

Far from it.

WHAT WILL YOU FIND IN BANKRUPTCY COURT?

First surprise, you will probably not get into an actual courtroom in front of a judge. In Michigan bankruptcy cases, in the Eastern District, the bankruptcy court is in downtown Detroit, but the room for the 341 hearings, or, creditor‘s meetings, is NOT one of the Judge’s courtrooms. And the hearings in Flint and Bay City may be in a courtroom, but there is no judge.

Same with Western District of Michigan bankruptcy cases, in Marquette or East Lansing or Grand Rapids.

The mis-named creditors’ meeting (I say that because creditors rarely show up) is presided over by the trustee assigned to your case.

In fact, the bankruptcy judge, by law, is prohibited from attending those bankruptcy hearings.

So, you get a trustee, one of a list of private attorneys, or maybe a Certified Public Accountant, who is on the trustee panel for your district, presiding over the hearing.

She or he is there most, or all. of the day, hearing after hearing.

The Detroit bankruptcy court schedules 7 or 8 hearings every half hour, from 8:30 or 9:00 in the morning until as late as 4:00 p.m.

How long in the day the docket runs depends how many cases are being filed.

As will be further shown in Part Two,

There is nothing to be afraid of!

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