
If you’re facing bankruptcy, you’re probably encountering a host of terms and concepts that you’ve never come across before. Bankruptcy is a complicated legal process, and it can be hard to fully understand how it works when you don’t have much prior knowledge about the topic. One common question new clients often ask bankruptcy lawyers is what a bankruptcy judge is and what role they play in the process of filing bankruptcy.
If you are preparing to file bankruptcy, it’s a good idea to be aware of how your case will go to court and how a bankruptcy judge’s rulings can directly impact the outcome.
What Bankruptcy Judges Do
Article I, Section 8, of the United States Constitution, authorizes Congress to enact “uniform Laws on the subject of Bankruptcies.” In 1978, with this authority, Congress enacted the “Bankruptcy Code,” the uniform federal law that governs all bankruptcy cases. This law replaced the 1898 Act and has been amended several times.
There is a bankruptcy court for each of the 90 judicial districts in the country. Each state has one or more districts, and the bankruptcy courts generally have their own clerk’s offices. Each bankruptcy judge is appointed for a term of fourteen years. Bankruptcy judges are the primary administrators of the rules of bankruptcy court. They are expected to:
- Hear all the arguments made within bankruptcy court by attorneys on behalf of petitioners and creditors
- Decide if petitioners qualify for the specific chapter of the Bankruptcy Code
- Sign off on motions and petitions made at various points in the application process
- Grant or deny these motions and approve the claims of creditors following the meeting of creditors
- Decide any matter connected with a bankruptcy case, such as eligibility to file or whether a debtor should receive a discharge of debts
Bankruptcy is a legal proceeding. A bankruptcy judge is a special type of judge who makes court decisions about bankruptcy cases. Most people filing for bankruptcy hire a bankruptcy attorney to help guide them through the process. In most cases, the bankruptcy judge has minimal involvement and your bankruptcy attorney handles most contact with the court. However, it’s important to be aware of what bankruptcy judges do and the role they play in how bankruptcy cases unfold.
Do you need to file for bankruptcy in Ohio? We can help. Call 614-228-4435 (Columbus), 937-222-7472 (Dayton), or 877-654-5297 (Cincinnati) to schedule a consultation with the experienced Ohio bankruptcy attorneys at Fesenmyer Law Offices, LLC.
Types of Bankruptcy and the Role of the Bankruptcy Judge
Two kinds of bankruptcies can be used for individual debt in the U.S. These two types of bankruptcy are known as Chapter 7 and Chapter 13. The phrase “filing bankruptcy” can refer to either of these forms of bankruptcy. Even though they are both types of bankruptcy that individuals can file, there are many differences between the two chapters.
Chapter 7
Chapter 7 bankruptcy is only available to individuals under a certain income level. If you’re interested in filing Chapter 7, your attorney has to calculate means test. This test measures your income level over the past six months. If you made over a certain amount, you won’t qualify for Chapter 7. If you are eligible to file Chapter 7, you can have certain types of debt discharged. Compared to Chapter 13, Chapter 7 is a short-term bankruptcy process.
Chapter 7 bankruptcy is ideal if you don’t have enough income to commit to a repayment plan and don’t have assets that are worth more than the exemption levels.
The entire proceeding should take only a few months, and you don’t have to commit to any sort of repayment plan. Once the process is complete, your debt will be discharged and you can move on with your life. It’s unlikely that you’ll directly interact with the bankruptcy judge during Chapter 7. While your case will go before the judge, most of the time you won’t need to make any sort of court appearance.
Chapter 13
With a Chapter 13 bankruptcy, you can repay some or all of your debt affordably over a three- to five-year period. Chapter 13 allows you to consolidate your payments to avoid fees and fines. Chapter 13 is the default bankruptcy option if you don’t qualify for Chapter 7. However, some individuals who qualify for Chapter 7 still choose to file Chapter 13. This is because Chapter 13 offers benefits such as the ability to maintain ownership of your home and vehicle.
Chapter 13 bankruptcy is right for you if you make over a certain income amount or you have too much equity in a home or vehicles to qualify for a Chapter 7.
You need to ensure that you have the ongoing income you’ll need to commit to the Chapter 13 repayment plan. Failing to make your payments under Chapter 13 puts you in serious trouble with the bankruptcy court, and it can result in your bankruptcy case being dismissed. If you successfully complete the court-approved payment plan, the debts covered by the plan are discharged.
If you are a debtor, your involvement with the bankruptcy judge is usually limited. The debtor and their attorney usually just meet with a trustee and will not see the bankruptcy judge unless an objection is raised. Chapter 13 debtors may only have to appear before the bankruptcy judge at a plan confirmation hearing.
Get Help from Our Ohio Bankruptcy Lawyers
Fesenmyer Law Offices, LLC is a leading bankruptcy law firm serving clients across Ohio. Our firm assists with a variety of debt management concerns, including bankruptcies, foreclosure defense, and repossessions. We have offices located in Cincinnati, Columbus, and Dayton.
If you are considering bankruptcy in Ohio, there’s no better choice of legal representation than our firm. We are ready to help you review the current state of your finances and identify the best strategy for gaining control of your debt. If bankruptcy is right for you, we’ll walk you through your options and assist you throughout the process.
Don’t wait to get help with bankruptcy in Ohio. Contact Fesenmyer Law Offices, LLC today by calling 614-228-4435 (Columbus), 937-222-7472 (Dayton), or 877-654-5297 (Cincinnati) to schedule a consultation with our experienced Ohio bankruptcy attorneys.