Bankruptcy is a specialized area of legal practice. Unlike a divorce, DUI or other criminal case, a bankruptcy is handled in Federal Court rather than State Court. If you were to get a divorce in Boise you would file in the Fourth Judicial District for Ada County. For bankruptcy, you would file in Federal Bankruptcy Court. Likewise, for a divorce, DUI or criminal matter in Ada County you would have a county Magistrate Judge hear and decide your case. A bankruptcy is heard and confirmed by a United States Federal District Bankruptcy Judge.
It's not just location that makes bankruptcy a specialized area. It has its own code of procedure and rules. If you have an attorney who doesn't know these rules you can end up not getting your bankruptcy confirmed. Like in all areas of law, in bankruptcy there are peculiarities that you don't know if you don't practice in that area.
Another difference about bankruptcy is it tends to be administrative. It is rare that an individual filing for bankruptcy will actually ever go before the bankruptcy judge. There is a debtor's examination meeting that occurs prior to the confirmation but that is run by the bankruptcy trustee, not the judge. This is known as a 341 meeting. 341 refers to the Code section which requires that this administrative step be taken.
There are several different types of bankruptcy which an individual or a business might claim. The most common is Chapter 7, Chapter 11 and Chapter 13. Chapter 7 is the liquidation of debts. Here there are income requirements that you have to meet in order to qualify. There is also Chapter 13 which is an individual debt adjustment. This does not discharge your debts, rather it allows you to repay them over a period of years. Chapter 11 is reorganization and is used by businesses to repay their debts.
If you have found yourself in a situation where you are contemplating bankruptcy, give us a call and see what we can do for you. Call today (208) 472-2383
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