Ask Bankruptcy Lawyers: Do You Have to Go to Court for Bankruptcy?

Do You Have to Go to Court for Bankruptcy?

The thought of filing bankruptcy isn’t something you take lightly. You have a lot of questions. We’re here to answer them! Here at Kentner Wyatt Attorneys at Law, we have the trusted, Kansas City bankruptcy attorneys you need to speak to about your questions. We offer legal advice and support you can count on. Today, let’s answer the question “Do you have to go to court for bankruptcy?” 

Table of Contents

  • Are Bankruptcies Worth Doing?
  • What Happens When You Consider Bankruptcy?
  • Do You Have to Go to Court for Bankruptcy?
  • Other Instances You’ll Need to Go to Court

Are Bankruptcies Worth Doing?

There are a number of occasions when filing for bankruptcy is the best option. The bankruptcy discharge is a court order releasing the borrower from personal liability on the debt. Bankruptcy stops collection calls, lawsuits, and wage garnishments. As well, it erases your debt. 

Those who are experts in credit counseling will tell you that bankruptcy may even help your credit score!.Most people struggle so long with their debt that their credit is already Poor by the time they file for bankruptcy. Once they do, their score actually rises, not falls. This is because the debt is erased, known in bankruptcy court as a “bankruptcy discharge,” so the score goes up even more.

What Happens When You Consider Bankruptcy?

Bankruptcy may make sense for your financial situation if you are unable to repay debts at the same time you cover everyday obligations such as food, child support, and shelter. We encourage you to speak with someone who works in bankruptcy law if you’re thinking about filing a chapter 13 case.

If you file chapter 13, it involves the creation of a three to five-year payment plan to repay your debts. If you comply with your repayment plan, you should be allowed to keep your property and discharge the debt.

Do You Have to Go to Court for Bankruptcy?

Yes, most often you do. When a debtor files bankruptcy, they will be required to attend a meeting of the creditors. The meeting of creditors is commonly referred to as the 341 meeting because the meeting is required under section 341 of the bankruptcy code. Creditors are not required, but do have the option of being at the meeting. 

You will need access to information to complete the bankruptcy forms necessary to initiate the bankruptcy proceeding. Additionally, the bankruptcy trustee will require documents to verify your petition was correct. This includes a list of all your creditors, the nature of the debt, the amount owed to each, and their mailing addresses.
Bankruptcy is a federal court proceeding. The cases are filed in federal court. All Kansas bankruptcies are filed in the U.S. Bankruptcy Court for the District of Kansas. The Kansas Bankruptcy Court has three divisions located in Topeka, Wichita, and here in Kansas City.

Kansas City Bankruptcy

Bankruptcy filers may need to attend other court dates. A bankruptcy case can turn to litigation fairly quickly. Debtors may be required to appear in court when a trustee objects to one of their exemptions or the judge orders them to appear and show cause. In addition, an adversary proceeding will likely require a court appearance, as well.
Bankruptcy isn’t the worst thing in the world. It may even be a good step for you to regain control of your financial situation. Reach out to our bankruptcy attorneys to learn more. We have handled many chapter 13 bankruptcy cases, along with the bankruptcy forms and court hearings, and can handle yours as well!