Question # 10:  What will happen at my hearing?

 What will the trustee do?

At your hearing the trustee will want to make sure you have been sworn in.  The trustee will ask you, "do you promise to state the whole truth and nothing but the truth." You should respond "I do" (assuming that you will state the truth).

The trustee's job is to review your bankruptcy papers to make sure that you have listed all of your property, and that the you have honestly and accurately valued your property.  The trustee may even want to ask you while you're under oath whether or not you honestly and accurately valued your property.  Sometimes, the trustee will spend more time on a case that involves a lot of property, than a case with little or no property.

Common questions from trustees

Common questions trustees have regarding property are: "How did you decide the value of your house?" "Whether you plan on keeping your cars?"  Whether or not anyone owes you any money?" "Whether you expect to get a tax refund?"  "Whether you expect to get any inheritance in the next 6 months?"  "Whether you are still at the same job?"

Additionally, the trustee will want to make sure that the laws you used to protect your property (known as exemption laws) are being used properly.  If you do not use the right exemption laws to protect your property the trustee may have a problem with your bankruptcy.  If so, some changes may be necessary.

Just because the trustee is asking you questions regarding your property doesn't mean that there is a problem.  Typically you can protect most or all of your property.  But you should check with a qualified bankruptcy attorney if you have any questions about any property you are concerned about protecting.  Also, the trustee may want to find out if you have given away any property before you filed your bankruptcy, or paid off any creditors while ignoring others.  The trustee can review your papers to find that out, or may just simply ask you a few questions about your financial dealings the past year or so.

Will any creditors be at my hearing?

After the trustee is done asking questions, creditors are given an opportunity to ask you questions.  However, most creditors, including major credit cards do not bother showing up at the hearing.

Questions which you won't be asked

Don't be confused by myths you may have heard, or by movies you may have seen. Because the answers are self evident, you are usually not asked why you are filing for bankruptcy or why you can't pay your bills.

I remember seeing in a movie where someone who filed bankruptcy went to their hearing and the court stamped "BANKRUPT" on the person's paperwork.  In all of the hearings I have gone to I have never seen that happen.  Nor do I believe that it is even legally possible since your bankruptcy case cannot be concluded until 60 days after your hearing.  Also, since there is no judge at the hearing, I don't think there is anyone there to declare you bankrupt!

I think it's safe to say that the exciting image of a courtroom that everyone has, based on Hollywood's theatrics, is far more entertaining and intimidating than anything you'll see if you choose to file bankruptcy. 

If you have been confused by all the rumors, then I strongly suggest you speak to a qualified bankruptcy attorney who knows first hand what happens at a hearing.  DON'T rely on someone who doesn't know.  Many professionals will be willing to meet with you at no charge to help you learn more about the process.