Do I Have to Appear in Court for a Bankruptcy Hearing in South Carolina?
If you have come to the decision to file bankruptcy, the last thing you want to think about is having to present your case in front of a judge. Although the anxiety of the bankruptcy process can be overwhelming, in many cases, you may not be required to attend a formal court proceeding. In this article, our Columbia, SC, bankruptcy attorneys outline the bankruptcy process and situations in which you may need to attend a court hearing.
Overview of the Bankruptcy Process
Bankruptcy is an opportunity for an individual to mitigate or wipe out their debt. By declaring bankruptcy, you can stop calls from creditors and give yourself the chance to start fresh, restoring your credit and financial footing. Most individuals file for Chapter 7 or Chapter 13 bankruptcy, with a smaller percentage of individuals filing for Chapter 11. Another type of bankruptcy, Chapter 12, is designed for “family farmers” or “family fishermen.” Chapter 7, Chapter 12, and Chapter 13 bankruptcy require that a trustee be assigned to each case.
Oftentimes, individuals may qualify for more than one type of bankruptcy, which is why it is important that you speak with a bankruptcy attorney to discuss which avenue will work best in your given situation.
341 Meeting
Bankruptcy cases must be filed in federal court, subject to filing fees stipulated by the federal government. At the beginning of the process, you will be required to attend a 341 meeting, also known as the “meeting of creditors.” Currently in South Carolina, this meeting is held on Zoom and you do not have to travel in person. This meeting will be run by a private case trustee, who will ask you questions about the bankruptcy paperwork you submitted and your assets, income, debts, and expenses. Creditors are allowed to join the meeting and ask you questions as well.
When You May Need to Appear in Court
If you are filing for Chapter 13 bankruptcy, you may be required to appear in court in the following situations:
Adversary Proceeding
If a creditor challenges your bankruptcy claim and questions your authority to sell a property or the ability of a specific debt to be discharged, then the creditor may request an adversary proceeding. The Federal Bankruptcy Code lists other situations in which an adversary proceeding may be held. If an adversary proceeding is held, you will be required to attend. However, it is possible that the dispute may be resolved without the need for a formal hearing.
Motion for Relief From Automatic Stay
If your lender or creditor is seeking to seize your home with foreclosure or repossession during the repayment period, they may file a motion to lift the automatic stay. You have the right to oppose this motion, but to do so, you will need to do so in court. Having an experienced Columbia bankruptcy attorney will give you the advantage you need to have your motion opposing the removal of the automatic stay granted.
Confirmation Hearing
In most Chapter 13 cases, a judge will approve your repayment plan at your trustee’s recommendation. In rare circumstances, a judge may require a confirmation hearing before approving your Chapter 13 filing.
Importance of Hiring Experienced Counsel
Filing for bankruptcy is a straightforward process, but you must understand what court forms need to be submitted and how to handle any snags that may arise along the way. When you work with the Columbia bankruptcy lawyers at Reed Law Firm, you give yourself the greatest opportunity to discharge or restructure your debt. We understand that your judgment may be clouded by the worry of having to appear before a judge. Our legal team has a thorough understanding of federal bankruptcy law, permitting us to assist you in navigating through any legal issues to secure the best possible outcome.
Considering Bankruptcy? Contact Our Columbia, SC, Bankruptcy Lawyers Today
There is no knowing when any of us may come upon hard times. There is a myth that bankruptcy is intended for families below the poverty threshold or who earn a lower income. Since 2005, Attorney Eric Reed has devoted his professional life to helping hardworking individuals find their way out of debt and is ready to assist you. To learn more or arrange your free consultation, contact our Columbia, SC, bankruptcy lawyers online or by phone today.
