In Bankruptcy, Ignorance May Take You The Wrong Way
–By Priya Jestin, Staff Writer
In dire financial straits and cannot see a way out of it? Most of us in such a situation would opt to file for bankruptcy. Why would anyone want to lose much needed money and peace of mind when a bankruptcy can save you both. However, how many of us actually understand the bankruptcy law and how it affects us in case we do file? Just a miniscule portion of people can truly claim to understand what they do when they file.
Now as the new bankruptcy law completes a year, it has become even more imperative to ensure that the right information percolates down to us. There are quite a few procedures that we may not understand and may accept blindly because it saves us the effort of trying to understand. That’s just like taking any medicines your physician gives you without querying about your ailment. For instance, did you know that if you file a chapter 7, you might not even see your bankruptcy judge? Uscourts.gov reports:
A debtor’s involvement with the bankruptcy judge is usually very limited. A typical chapter 7 debtor will not appear in court and will not see the bankruptcy judge unless an objection is raised in the case. A chapter 13 debtors may only have to appear before the bankruptcy judge at a plan confirmation hearing. Usually, the only formal proceeding at which a debtor must appear is the meeting of creditors, which is usually held at the offices of the U.S. trustee.
Read more: Bankruptcy Basics