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How to Avoid Stress at Your Georgia Bankruptcy Court Hearing

If you have never been to Court before, you may be very uncomfortable with the idea of going to a federal courthouse to discuss your personal financial problems with an unknown official. If you file a bankruptcy case in Georgia under Chapter 7 or Chapter 13, however, that is what you will have to do.

The good news is that you are not alone - thousands of hardworking, honest people just like you have made the difficult decision to file a bankruptcy. Because of the large number of cases filed, your case will likely not attract any particular attention. In addition, as a practical matter in the Bankruptcy Court for the Northern District of Georgia (Atlanta, Gainesville, Newnan, and Rome), most of the debtor's lawyers, the creditor's lawyers and the Court personnel know each other and maintain friendly relations. Thus, most bankruptcy hearings are predictable, run smoothly and take very little time.

You will always be more relaxed and do better, however, if you know what to expect. Most consumer debtors will be called upon to appear at one or two hearings Some cases do require your attendance at others. This part of our web site is written for you to paint a picture about what to expect and what to do when you are told to come to Court for a Bankruptcy hearing.

General Rules - these guidelines are applicable to all hearings you might have to attend:

• Arrive on time - if your hearing is scheduled for 2:00 PM, be there at 1:30. If you are late, everyone will be unhappy with you and bad things could happen - including the loss of your car, your home or even your entire case. If you need directions, call the day before. Know where in the Courthouse you need to be. If you arrive early you will have time to discuss any last minute matters with your lawyer and you will be able to watch one or more hearings prior to yours being called.
• Parking can be expensive. Remember that parking may be hard to find and that you may have to pay as much as $10 for parking.
• Stay in contact with your lawyer - in some cases, your lawyer may be able to resolve a problem with your case prior to the hearing.  Make sure that you keep in touch with your lawyer starting a day or two prior to your hearing and that you are available by phone or pager.
• Wear nice clothes - avoid blue jeans and T-shirts if possible.
• Avoid bringing children if possible - if you have no choice, bring someone else to watch the kids when you are called to testify.

Types of Hearings in your Georgia Consumer Bankruptcy case

1. Section 341 Meeting of Creditors hearing - a 341 hearing is scheduled in every Chapter 7 and Chapter 13 that is filed.  It is called a 341 hearing because Section 341 of the United States Bankruptcy Code requires all debtors to be examined by a Trustee.

• When held: 30 to 45 days after you file
• Your attendance: MANDATORY
• How long will it take: in most cases, 341 hearings last about 10 minutes. Your case will be part of an hour long calendar. The calendar is called at the beginning of the hour. If you are late, your case may be dismissed, or you may have to face an angry Judge to explain why you were late. We recommend that you plan to arrive 30 minutes to an hour early.
• What will happen: your 341 hearing will be run by your Trustee. Trustees are not judges, but they report directly to the Judges. The Trustee's goal in a 341 hearing is to review the paperwork you and your attorney filed, ask questions about your financial situation and decide whether to file an objection to your case.
• Questions you can expect from your Chapter 7 Trustee
• Questions you can expect from your Chapter 13 Trustee and examples of common Objections to Confirmation
• Who else may be there: Attorneys or paralegals representing your creditors can also appear and question you at a 341 hearing. Creditors usually ask you questions in order to see if you have money or assets not revealed in your Schedules. Thus, it is wise to bring your bankruptcy paperwork and to read it prior to your hearing. Secured creditors may also ask for proof of insurance on your car or home.
• Anxiety rating for a 341 hearing - 5 out of 10

2. Georgia Chapter 13 confirmation hearing

• When held: 30 to 45 days after 341 hearing
• Your attendance: very unlikely that you will have to appear - do not assume, however, check with your lawyer
• How long will it take: There may be as many as 250 cases on a Judge's confirmation calendar. You may be sitting for 4 or 5 hours before you are called - your actual hearing may be ten to thirty minutes long. This is why it is in everyone's best interest to resolve the Trustee's and Creditor’s objections to Confirmation sooner rather than later.
• What will happen: when your case is called, you will sit with your lawyer at small tables at the front of the Courtroom. Bankruptcy Courtrooms are large and formal. The Judge will be in a black robe. Most of the time, your lawyer will speak for you. In some cases, you will be asked to testify from the witness box.
• Who else will be there: You may be in a crowded courtroom in front of several hundred people. You may be asked questions by your lawyer, the Judge, the Trustee or a creditor lawyer.
• Anxiety rating for a confirmation hearing: 9 out of 10

3. Motion for Relief hearing in Bankruptcy Courts in Georgia

• When held: 15 to 45 days after a secured creditor files a Motion for Relief
• Your attendance: it is possible you may need to appear - check with your lawyer.
• How long it will take: You may be sitting 4 or 5 hours - your hearing may be 10 to 30 minutes long.
• What will happen: Motions for Relief are typically filed by secured creditors who want to foreclose on the collateral you pledged. Most of these Motions are filed in Chapter 13 cases. For example, if you included a mortgage debt in your case and you have failed to make all post-petition mortgage payments, the mortgage lender will file a Motion for Relief. Similarly, if your car insurance lapses or if you fail to tender trustee payments, the car lender may file a Motion for Relief from Stay. If the stay is lifted, your bankruptcy will no longer prevent that creditor from foreclosing on its collateral. Often Motions for Relief from Stay are settled at the last minute by Consent Order. The Consent Order may give you one last chance at keeping your property.
• Anxiety rating for a Motion for Relief hearing: 7 out of 10

4. Motion to Dismiss hearing in Bankruptcy Courts in Georgia

• When held: 20 to 30 days after the Chapter 13 Trustee files a Motion to Dismiss.
• Your attendance: Unlikely
• How long it will take: you may sit one to three hours before your case is called before the Judge. Your actual hearing may last 10 minutes.
• What will happen: Your Chapter 13 Trustee will file a Motion to Dismiss if you fall behind in your payments to the Trustee (a funding problem) or if the Trustee's computer shows your case running longer than 60 months (a term problem). When the Motion is filed, a copy will be mailed to you and to your lawyer. If you want to contest the Motion to Dismiss, your lawyer needs to file an Objection to the Motion to Dismiss. If you receive a Motion to Dismiss, it is imperative that you contact your lawyer immediately. A Motion to Dismiss may be filed three or four years into your case. If you have moved or changed numbers, your lawyer may not be able to find you. If your lawyer cannot find you, he cannot object to the Motion to Dismiss. Many Motions to Dismiss are not contested because lawyers cannot find their clients. Don't let this happen to you - let your lawyer know where you are. Most Motions to Dismiss can be resolved using a strict compliance Consent Order that gives you a final chance to make your case work. You may have to agree to pay the Trustee a lump sum and/or increase your Trustee payment to cure the Motion to Dismiss. Motions to Dismiss are rarely heard since the issues are simple.
• Anxiety rating: 7 out of 10

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