Bankruptcy Basics – Part 7: Courts Hearings

caption The following program was produced by the United States Courts. Depending on the chapter of your personal bankruptcy case
and it'' s intricacy, you may also be needed to appear at hearings before the
bankruptcy judge. In a Chapter 13 case, you might only have
to appear at a hearing for the court to verify, implying approve, the Chapter 13 plan.
In a Chapter 7 case, you typically will not appear in court and will not see the judge unless an objection is raised or a.
reaffirmation hearing should be held. A reaffirmation hearing is held when a debtor desires to continue.
to pay a financial obligation, secured by, state, a cars and truck, or furniture, in order to keep the residential or commercial property. Let'' s enjoy what goes on in a common hearing where a judge thinks about whether a debtors reaffirmation. contract must be approved.First, the judge will tell you about the effects of declaring a financial obligation, as well as your alternatives. “Miss Lopez, the Bankruptcy Code requires that.
whenever someone wishes to declare a debt that I should hold a hearing at which I go over.
with you the alternatives to participating in the reaffirmation agreement, and the effects of.
doing so. I likewise should make a finding that it'' s in your. finest interest and doesn ' t enforce an undue challenge on you. Of all, with regard to the alternates, one alternate, of course, is declaring.
the financial obligation and that'' s why you ' re here. Another is that I might approve a plan where you purchase back the.
cars and truck, called a redemption, based upon the worth of the cars and truck as figured out.
by me. Sometimes, that'' s less than the amount of the.
debt. The only issue with that is that you have to develop cash to do that.The third option is called a surrender. This provides you the opportunity to give the.
cars and truck back and be without any further liability. That'' s something thats worth thinking about if the car payments were.
beyond what you could reasonably manage. The consequences if you do declare the financial obligation.
are that youll be accountable on the full quantity of the financial obligation, and if later you have monetary issues, they.
can not just repossess the vehicle, they can put it through the auction and return against you for anything that'' s. left over after using the auction proceeds against the debt. I need to discover that the agreements in your finest interest and does not.
impose an excessive hardship on you. Let me ask you, now that we'' ve discussed those alternatives,.
do you have any concerns?” “No, Your Honor.” “Do you still wish to continue?” “Yes.” Prior to authorizing the agreement, the judge must first ensure.
The debtor can manage the payments. “Do you have any arrangement where you can catch.
that up with the loan provider?” “Yes, the attorney for the financial institution informed me.
that they might pay those 2 months that I lag at the end.
of the loan, and they will also want to decrease the rate of interest to decrease the monthly payment.”.
” That'' s extremely essential due to the fact that once you declare the financial obligation, if you are behind, they might follow you immediately for those.
unpaid payments.Now, is this an automobile that you drive personally?” “Yes.” “Do you require.
the vehicle to get back and forth to work as your main ways of transportation?” “I drive it and.
I utilize it to go to work and I likewise take my mother to her medical consultations.”.
” Based on that I will find that this agreement is in your best interest.
and doesn'' t enforce an excessive challenge on you.” “Ill enter an order to that result and youll get a copy of that.
in the mail. In the meantime, simply ensure you remain current.
on those payments.” “I will.” “Thank you really much, Ms. Lopez.”.
” Thank you, Judge.”. As discovered on YouTube – Creative Commons License.

Video Transcript:

“Miss Lopez, the Bankruptcy Code requires that.
Of all, with respect to the alternates, one alternate, of course, is reaffirming.
The only problem with that is that you have to come up with cash to do that.The 3rd alternative is called a surrender. Before approving the contract, the judge needs to first make sure.
The debtor can manage the payments.

License: Creative Commons