Most Chapter 7 applicants don't even set foot in court and only see the judge if there are objections to the bankruptcy plan. Different Types of Bankruptcy If you were to ask an attorney, "What is bankruptcy?Chapter 13 debtors typically appear in court just once, at the bankruptcy plan confirmation hearing. " you would probably be asked whether you are a business or an individual, the status of your debts, and other questions to help narrow down the definition.For example, an appointed trustee carries out the administrative duties of Chapter 7, Chapter 13, and other types of bankruptcy cases. The bankruptcy discharge, a court order releasing the debtor from personal liability for certain debts, is the main way this is accomplished.The debtor actually has very little interaction with the bankruptcy judge. The discharge also prohibits creditors or collections agencies from communicating with debtors.
The process normally involves a period of consolidation, which may include a reduction in work force.The plan may be for as long as three years for Chapter 12 filings, and up to five years with court approval.The trustee in Chapter 12 cases functions similarly to a trustee in Chapter 13.Between all the different Chapters and rules, it isn't uncommon to feel a bit overwhelmed when deciding whether bankruptcy is right for you.The good news is that you don't need to learn about this on your own.The informal meeting of the creditors (also called a "341 meeting," based on Section 341 of the Code) is typically held at the trustee's office. Supreme Court decision described bankruptcy's role as follows: [I]t gives to the honest but unfortunate debtor a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt. Truth is, bankruptcy can mean different things to different debtors.