What Happens in Bankruptcy Court?

The Bankruptcy Court for the Middle District of Tennessee is located in the Customs House at 70l Broadway in downtown Nashville, Tennessee.  The meetings of creditors are held in Room 100, which is on the first floor of the Customs House.  Court hearings are held in the courtrooms, all three of which are located on the second floor.  For security reasons, all doors to the Customs House are locked except for the back door.  There is a parking lot immediately behind the Customs House, and there is also parking right behind the First Baptist church which is located across 7th Avenue from the Customs House.

The initial hearing in a bankruptcy case is called the meeting of creditors.  The meeting of creditors occurs about thirty days after you file your petition.  This meeting should be called, more appropriately, meeting the Trustee.  Few creditors actually attend the meeting of creditors.  In Chapter 7, those creditors that have collateral are most likely to attend, as they wish to know whether you wish to give the collateral back or whether you desire to "reaffirm" the obligation.

In Chapter 13, secured creditors generally appear to determine how much money they get paid through the Chapter 13.  Most of the discussion at a Chapter 13 meeting of creditors is between the creditors and your attorney.  It is very important in Chapter 13, and can be important in Chapter 7, that you bring with you to court proof of full coverage insurance on all significant items of property.  Obviously, this includes houses and cars, but may include other items if they are unusually valuable.  Proof of insurance cannot be an insurance application, but must be either an actual insurance policy or an insurance binder.

A chapter 7 meeting of creditors generally lasts no longer than an hour, and a Chapter 13 generally no more than an hour and a half.  This time is for the entire meeting which includes numerous cases.  Your case would only take up a small portion of that time.

There can be situations which arise in a bankruptcy case which call for litigation.  In other words, an issue which arises out of an objection by a party to the bankruptcy would have to be argued in Court just like any other court case.  This can happen in both Chapter 7 and Chapter 13 cases.  This is one of the most important reasons that a person should not file bankruptcy without an attorney.  If an issue arises, the debtor is probably going to be ill equipped to go into Court and argue points of law in front of a judge.