When you think about legal proceedings, it is likely that you also think about courtrooms. When it comes to bankruptcy, do you have to stand in front of a judge? It is normal to have this concern. After all, a lot of people have some anxiety when it comes to court proceedings. Bankruptcy hearings do not always require you to go to court, but sometimes, they can. Here are some examples that you may have to go to court for:
When There Is an Adversary Proceeding
An adversary proceeding is separate from your bankruptcy case. These proceedings could be due to:
- Lien stripping
- Fraudulent transfers
- Joint property sale
- Objection to discharge
These lawsuits are connected to the bankruptcy but are separate filings. Often, these are filed by creditors or by the trustee. In these cases, you would have to stand in front of a judge and argue your case. Any time that you may have to go to court for bankruptcy, you should have a lawyer with you.
When There Is an Objection to Exemptions
When you file for bankruptcy, you have to state what property is exempt from the bankruptcy. Every state has its laws regarding what is exempt. When you state the exempt property, you need to make sure that you followed the rules. If you do not, you could wind up in court defending your exemptions. In Chapter 7 cases, you are more likely to keep all of your property.
When There Is a Show Cause Order
A show cause order may be used if there is a case of contempt. In these cases, the debtor has most likely lied to the court. Sometimes, it may be because the debtor forgot a step and didn’t disclose certain assets or provide the documents. If this happens to you, you would have to show up to the court to prove that you should not have your bankruptcy discharged. Sometimes, this can be because of an honest mistake. If you tried to fill the paperwork out on your own, there is a good chance that you may have made errors.
To avoid errors in your bankruptcy and to ensure that the process moves as smoothly as possible, you should discuss your case with a lawyer, like a bankruptcy lawyer from Darrell Castle and Associates, PLLC. An attorney can help guide you through the process and ensure that you do not make any mistakes. For help with your bankruptcy, contact a lawyer as soon as possible.