Rochester Bankruptcy and Debt Relief

I am often asked whether the debtors here in Rochester will get to meet the Bankruptcy Court Judge during their 341 meeting, otherwise known as the meeting of the creditors.  My usual response to this question is no, since the bankruptcy court judges are barred by law from attending the meeting of the creditors.

While the meeting of creditors is open and the public can attend it, the bankruptcy judge assigned to the case may not do so. While it seems counterintuitive, the reasons for this is to avoid any perception of bias on the part of the judge. Prior to 1979, when the current version of the bankruptcy code became effective, a bankruptcy court judge was able to attend the meeting of creditors.  However, the Congress decided that it was necessary to prohibit judges from attending the meeting.

Accordingly, Bankruptcy Code section 341(c) provides that “the court may not preside at, and may not attend, any meeting under this section.” Although the local meeting of creditors is held in the Rochester Federal Courthouse, it is not a court hearing and the trustee presiding over the meeting is not a judicial officer.  I tell the debtors that in most Chapter 7 consumer bankruptcy cases, the debtor will never appear before the judge assigned to the case.

If I am asked the same question about the Chapter 13 bankruptcy case, my question will be the opposite since as a part of any Chapter 13 bankruptcy, the debtors will have to attend a confirmation hearing which, in Rochester, will be presided by Judge Ninfo.

If you contemplating filing Chapter 7 Bankruptcy or Chapter 13 Bankruptcy, or are dealing with debt problems in Western New York, including Rochester, Canandaigua, Brighton, Pittsford, Penfield, Perinton, Fairport, Webster, Victor, Farmington, Greece, Gates, Hilton, Parma, Brockport, Spencerport, LeRoy, Chili, Churchville, Monroe County, Ontario County, Wayne County, Orleans County, Livingston County, and being harassed by bill collectors, and would like to know more about how bankruptcy may be able to help you, contact me today by phone or email to schedule a FREE initial consultation with a Rochester, New York, bankruptcy lawyer.

I spend a fair amount of time in 341 hearings.  While waiting for my bankruptcy cases to be called, I listen to the trustee asking debtors and their lawyers questions about bankruptcy petitions.  In my experience, one thing that always that gets bankruptcy trustee worked up, are incomplete or inaccurate bankruptcy petitions.  Because the bankruptcy petition is signed by the debtors who, by signing it, certify its accuracy, debtors’ failure to read their bankruptcy petitions and lack of awareness of factual errors or omissions that they contain may cause significant problems.

While a completed bankruptcy petition usually runs between 30 and 40 pages, it is not an exciting read, and contains plenty of legalese, as well as recitals of the debtors’ financial assets, income, expenses,a a list of all the creditors.  However, by signing it, the debtor certifies that he/she not only read it, but that all information contained in the petition is true and correct, just as if the debtor testified to that information under oath.  At the beginning of every 341 hearing, the trustee asking the debtor if he/she read the bankruptcy petition before having signed it, reviewed it with his/her bankruptcy attorney, and if everything in the petition is true and correct.

Trustees get very upset at debtors because their petitions weren’t accurate or complete.   A typical debtor would tell the trustee, “I didn’t notice a mistake or omission and it needs to be corrected,”  but later admit they did not read the petition carefully.  When the bankruptcy petition is missing important information and that information could have been easily corrected by the debtor, the debtor’s credibility is greatly reduced.  If the petition is completely inaccurate, the trustee can allege that the debtor was engaging in fraudulent and deceptive conduct.

In my practice, I insist that my clients read every page of their petition and review it with me before they sign it.  Even if the client want to rely on my work, the petition has to be read by every client who must understand its contents.

If you are dealing with debt problems in Western New York, including Rochester, Canandaigua, Brighton, Pittsford, Penfield, Perinton, Fairport, Webster, Victor, Farmington, Greece, Gates, Hilton, Parma, Brockport, Spencerport, LeRoy, Chili, Churchville, Monroe County, Ontario County, Wayne County, Orleans County, Livingston County, and being harassed by bill collectors, and would like to know more about how bankruptcy may be able to help you, contact me today by phone or email to schedule a FREE initial consultation with a bankruptcy lawyer.

What happens if you’re in a Chapter 7 bankruptcy, and fall behind in your payments on secured loan, such as your home mortgage or car loan?  Under those circumstances, it is possible to covert to Chapter 13 bankruptcy where you can make payments though the plan and to stop a foreclosure or car repossession. While it is not as simple as it is to convert from a Chapter 13 bankruptcy to a Chapter 7 bankruptcy, it can be done by filing a motion with the court and placing your creditors on notice.

The bankruptcy court will require a good reason for granting your motion, and if one is provided, the court will convert the case.  There are rules about converting for “bad faith” or if you have already converted the case before, but generally, requests for conversions are granted. Once the motion is granted, your bankruptcy lawyer can file a Chapter 13 plan which will allow you to cure any arrears and to give you time to repay house or car payments, and stop the foreclosure or repossession.

Similarly to converting from Chapter 13 to Chapter 7 bankruptcy, your petition will need to be updated.  Also, some of the debts might be treated differently in Chapter 13.  You will need to prepare a plan, and there will be a new trustee appointed and a new 341 hearing held. Eventually, your plan will need to be confirmed by the court.   Overall, the process isn’t too difficult and you are likely to be able to save your home or car.  For many debtors, the benefits of converting their case are worth it.  A bankruptcy attorney will be able to guide you through the process.

If you are dealing with debt problems in Western New York, including Rochester, Canandaigua, Brighton, Pittsford, Penfield, Perinton, Fairport, Webster, Victor, Farmington, Greece, Gates, Hilton, Parma, Brockport, Spencerport, LeRoy, Chili, Churchville, Monroe County, Ontario County, Wayne County, Orleans County, Livingston County, and being harassed by bill collectors, and would like to know more about how bankruptcy may be able to help you, contact me today by phone or email to schedule a FREE initial consultation with a bankruptcy attorney.