BANKRUPTCY JUDGE: THE PHANTOM IN YOUR CASE

Bankruptcy Judge:

The Phantom in Your Case

Will the judge approve my bankruptcy case? Do I have to explain to the judge why I’m in bankruptcy? What if the judge makes a plan I cannot pay?

When you’re considering bankruptcy, you start to think about your upcoming encounter with a federal bankruptcy judge. Black robes.  Sober face.  Gobs of power over your finances. It can be unnerving.

Relax. Chances are, you’ll never even meet a bankruptcy judge in the flesh. You’ll collect the judge’s signature on the important orders in your case, but you’ll never come face to face.

Job of a bankruptcy judge

Think of the bankruptcy judge as an umpire.  He enforces the rules of the game and decides disputes.  Safe?  Out? He has no role in drawing up the lineup nor choosing strategy.  He just makes the call when the action moves to his courtroom.

If you are a debtor (the person who has filed a bankruptcy case) the opposing team, so to speak, is the trustee and perhaps creditors in your case. They have interests that may be different from yours.

When a dispute arises in your case that the parties can’t settle, the judge will hear the matter and make a ruling. But until a dispute moves to the courtroom, the judge doesn’t know your case exists.

When the judge is involved

The judge signs the most important document in your bankruptcy case, the discharge.  That’s the court order that says that your dischargeable debts are henceforth unenforceable.

Unless some party has challenged your right to a discharge, the judge’s signature is automatic.  He doesn’t pull your file, sift through your financial life, or speculate on whether bankruptcy was necessary.

If those with close-up information about your situation, like the trustee in your case, and the people you owe money haven’t complained, there’s no dispute for him to resolve.

Judges also sign orders that have big-time effect on the legal rights of your creditors.  Lien avoidance or lien stripping are the most frequent examples. Standard bankruptcy law says a discharge doesn’t affect liens on assets; so when bankruptcy law lets a debtor invalidate a lien, a court order signed by the judge, is necessary. The judge looks over the papers you’ve filed to strip a lien only to see that your motion includes competent evidence and that the law allows the relief you’re asking for.

Find your courtroom drama elsewhere. If you want legal drama, watch TV. You’re not likely to find it in your bankruptcy case.

And that’s just fine.  Dull is good when you’re a party to the case.

If you are facing significant financial strain and want to explore how bankruptcy could provide you relief, then we invite you to contact McFerran Law, P.S. Our legal team has accumulated more than thirty-five years of bankruptcy law experience and is ready to help you explore your financial options during this difficult time. Call us at 253-471-1200 to schedule a FREE one-hour bankruptcy consultation at any of our offices in Tacoma, Seattle, Kent or Silverdale.

Martin Prybylski

Attorney at Law

McFerran Law, P.S.

3906 S 74^th Street

Tacoma, WA 98409

253-284-3811