What You Should Expect At Your Bankruptcy Hearing

Going bankrupt is a stressful decision and a difficult choice. If you've considered every other possibility, but you and your attorney feel a bankruptcy is the best option, you must go to a bankruptcy hearing, which can be terrifying if you don't know what to expect. If you're considering bankruptcy, check out these must-know facts about your bankruptcy hearing.

You Will Be Under Oath

The bankruptcy hearing is called a hearing, but it doesn't actually take place in a court room, and there is no judge. However, you are placed under oath, and the entire meeting is recorded. Most of the time, the trustee has a handful of cases scheduled for the same hour. So even if your meeting is scheduled for 3:00PM, you may not actually start your meeting until 3:15PM. You may have to wait a while for your turn, but your actual meeting will only take a few minutes. Although you're under oath and being recorded, this is a routine experience. You should answer every question truthfully and take the process seriously, but there is no need to be nervous.

There's a Lot of Paperwork to Bring

Your lawyer will work with you on what you need to bring to the hearing, and in some cases, they will bring most of the paperwork for you. Make sure to bring your government issued ID and your social security card. Other documentation includes copies of mortgages for homes you own, car titles, property deeds, tax returns, pay stubs and bank statements. It's particularly important to bring your proof of ID and social security card. They are protection against bankruptcy fraud, and without them, the hearing cannot take place.  

Your Creditors Can Ask You Questions

Possibly one of the most terrifying thoughts is that your creditors have the right to ask you questions at this hearing. In most cases, no creditors will show. The only creditors who usually want to ask questions are those whom you owe money to for your house or car. Don't worry. They aren't there to berate you or harass you for filing for bankruptcy. They mostly just want to find out if you plan on repaying the home/car loan, and if you do, they may require you to sign something saying you intend to continue paying on the loan even after the bankruptcy. If you recently incurred a lot of credit card debt or if the information on your bankruptcy papers is different than what you put on your credit application, the creditor may also have questions.

The Trustee Will Ask You Questions

Most of the hearing is spent answering questions asked by the trustee. These are standard questions that they ask everyone. They vary from trustee to trustee and state to state, but most of the questions are asked to ensure you are filing for bankruptcy and that all the information is correct. Some common questions include:

• Did you list all your property?
• What is your gross monthly income?
• Have you filed before?
• When was the last time you incurred new debt?
• Do you own a business?
• Are there any changes or omissions?

Your lawyer works with you before the hearing to help you understand the questions and craft your answers. Obviously, you want to answer truthfully, but some of the questions may be confusing and difficult to answer, causing to leave something out if you aren't properly prepared.

Filing for bankruptcy is a big deal, but the bankruptcy hearing doesn't have to be scary. Work with your lawyer, so you know exactly what to say when the questions are asked. If you're ready to take that next step to get out of debt, contact a bankruptcy attorney from a firm like Wade Bettis, J.D., Ph.D., PC today.