If I hire a bankruptcy lawyer will I still need to go to court?

Filing for bankruptcy protection gives consumers the right to discharge their unpaid bills and allows them to obtain a fresh financial start. A Chapter 7 bankruptcy is primarily for people that do not have a lot of income and little to no property to lose. Consumers who are saddled with large amounts of unsecured debts may see this as their best option to get out from overwhelming debt. The easiest way to distinguish between unsecured and secured debts is to determine if the creditor can take personal items or property back when you are unable to pay back the loan. For example, a house or motor vehicle is a secured debt, which means that the lender can repossess your car or foreclose on your home if you don’t pay your bills. A bankruptcy lawyer can provide advice regarding whether filing for Chapter 7 or Chapter 13 is appropriate for your financial situation.

Required Court Appearance

When an individual files for Chapter 7, they must list all of the creditors they are seeking relief from. Approximately 30 to 40 days after the bankruptcy petition is filed in federal court, the debtor will be required to attend a meeting of the creditors presided over by the bankruptcy trustee. This is known as the “341 meeting” and the petitioner is required to attend this along with their bankruptcy lawyer. The individual must be prepared to answer questions under oath regarding their assets and liabilities. Failing to show up may result in their case being dismissed.

Why You Need a Bankruptcy Attorney

The federal bankruptcy rules may require the petitioner to attend additional court proceedings. In a Chapter 13 case, the petitioner may have to attend a discharge hearing regarding any property that they want to reaffirm. A bankruptcy lawyer can help by letting the individual know which court appearances are mandatory.