Bankruptcy Confirmation Hearing in San Francisco, CA

On September 1, 2010 TMZ reported in “Rapper Young Buck: I'm Bankrupt ... Not Broke!” that a popular rapper filed for Chapter 13 bankruptcy to get his finances back in order after federal agents raided his home for tax debts.

The limping economy batters everyone, including big name celebrities in California.  A San Francisco, CA area debtor in files a bankruptcy case in federal court not state court.  Bankruptcy is based on federal law.  In a Chapter 13 bankruptcy, after the debtor attends a 341 Hearing, and the individual files the bankruptcy plan, the next proceeding is the confirmation hearing. The court approves the plan at the confirmation hearing if there are no creditor oppositions.

Bankruptcy Confirmation Hearing

In a bankruptcy in San Francisco, CA filed at the US Bankruptcy Court, Northern District of California, the confirmation hearing is held at 235 Pine Street, in the heart of downtown San Francisco, walking distance from the Montgomery Street BART station.  When going to the bankruptcy court in San Francisco, go first to the 19th Floor for security screening.  In San Francisco, people are not allowed to bring food or drink to the courtrooms.  After the security check, the individual will be directed to courtrooms in the 22nd or 23rd floors.

Bankruptcy Judge

The bankruptcy judges in San Francisco who preside at confirmation hearings are generally serious.  They move cases along when people do not show up.  Sometimes if there are other hearings going on at the same time, the judge may pass and recall an item to ensure due process so a case does not get dismissed in the event a person is late or an attorney is covering another matter at another floor.  Debtors and their attorneys must follow court rules, or the case may be dismissed.  When a court dismisses a case, the attorney representing the debtor may be required to give back to the debtor all fees. The debtor may file a new case, but the debtor must pay court costs again.

Chapter 13 Plans

The Chapter 13 plan is similar to debt consolidation, but not the same as private debt consolidation. In private debt consolidation, the company may pool a debtor’s debts together and charge a fee for the service.  The creditors do not need to sign up for the service, and can still file suit against the debtor for not paying.  In Chapter 13, there is an automatic stay against collections activities.  When a judge approves a plan, the debtor pays the trustee monthly.  The trustee in turn distributes payments between the creditors.  A court may dismiss a case if the debtor does not pay. 

What to Expect

When attending a confirmation hearing, review the calendars prior to entering the courtroom.  There may be over 40 cases sometimes.  Some senior attorneys may be seen typing away on iPads or reading books in the audience because they are familiar with the long drawn out process.  Some hearings may take over 2 hours.  Confirmation hearings are open to the public.  A creditor may appear by telephone to object to confirmation.  A confirmed Chapter 13 repayment plan binds the debtor and each creditor.

Rinne Legal helps people with bankruptcies, estate planning, and loan modifications in Contra Costa County, Sacramento County and Solano County. Rinne Legal has offices in Walnut Creek, Fairfield, Sacramento and Elk Grove. Contact Rinne Legal for a free consultation.  These blog posts are for informational purposes only and not intended nor should be construed as legal advice.  These blog posts may be considered attorney advertising in some states. Prior results described on blog posts do not guarantee similar outcomes in future cases.  There is no intent to create an attorney-client privilege or relationship with anyone accessing information on this blog.  Authors posting on this blog are not obligated to reply to any emails seeking legal advice.  The information contained on this blog is not intended to be a solicitation.