Tuesday, September 18, 2012

Bankruptcy Court

I went to bankruptcy court a few weeks ago -- not for myself, but because I was accompanying a friend who didn't want to go by herself and who needed a ride. Having written numerous websites for bankruptcy lawyers, it was interesting to finally see the process in action. Since the beginning, I've been the liason between my friend and her lawyer, running paperwork back and forth, helping her fill in the mountains of information her lawyer needed in order to successfully file on her behalf, and finally watching the finale of the long and stressful journey. I feel I can write with far more knowledge and depth on the subject. How ironic I haven't picked up any bankruptcy lawyer websites lately. Personal injury, Social Security Disability and Workers' Comp, and divorce lawyers, yes. But it's been a while for bankruptcy.

If you've never been to bankruptcy court, I'll tell you all about it. After we finally located the correct building in The Big City's downtown area, we entered a room decorated in what I like to call Government Bleah: gray carpet, white walls, florescent lighting, gray waiting room chairs, official posters in both English and Spanish hanging on the walls...you know exactly what I'm talking about because you've been there many times yourself, or at least in some government office that looks exactly like it. At the front of this long room were three tables set in a U formation, behind which sat a bored but pleasant-looking middle-aged woman typing away at a computer. To her right was a microphone, behind which were three surprisingly comfortable looking chairs. On another table sat another microphone and a chair. Facing these tables were rows of far less comfortable waiting room chairs, and here is where we sat down, along with a number of others who looked just as hesitant and confused as we did.

The woman, dark-haired and somehow official despite the fact that she wore nothing too distinguishing or flashy, stood and announced that we were in bankruptcy court. After giving us a few instructions, she sat down again and called up the first case. Those people went and sat in the chairs to her right along with their lawyer. The official woman then asked a series of questions, to which they answered yes or no. There was some shuffling of papers and an unanswered call for any creditors who wished to make a statement (in fact, not one creditor showed up for any of the cases I witnessed), and then the case was closed and another was called.

The only amusing thing that happened in two hours was that a tall blonde woman walked in at one point and sat very deliberately near a couple who were sitting in the row in front of us. The blonde woman sat and glared at the couple, who ignored her for a few seconds. Then the man turned back to us and said, "I'm getting the staredown," and laughed. Not knowing if "the staredown" was something that normally happened to people in bankruptcy court, I furtively watched the angry blonde woman and came to the conclusion that she must be a creditor who was very upset with the fact that these people were declaring bankruptcy; but when she leaned over and angrily whispered something  to the man and woman, it was immediately apparent that she knew them on a more personal level. From what I gathered from subsequent events, the woman of the couple was an ex-spouse to a man who was declaring bankruptcy, and the angry blonde woman was the bankrupt man's current wife or girlfriend (or someone who was strongly on his side). A house had not been sold as per the divorce agreement, which caused the official a little concern. The ex-wife stood up and told the judge she'd had it on the market for a year without success, and the blonde woman snorted in disbelief. When the ex sat down, the blonde woman stage-whispered to her, "Yeah right, it hasn't even been listed yet. Way to lie!"

Bankruptcy court AND a show!

My friend's lawyer was late, but he walked in before any of his cases were called. When it was my friend's turn, the questions were asked and answered and it was all over in about two minutes. Nothing dramatic, all routine. (Interesting side note: it was the first time my friend had ever met her lawyer in person.)

I guess I kind of thought something more dramatic would happen. There wasn't even any weeping or wailing, no stern looks from the official, no explosive denunciations from a creditor. Nothing like that. Just a lot of sitting and waiting, which has always been my experience when dealing with government sorts of things.


2 comments:

Linnea said...

I've represented my parents as creditors at a bankruptcy hearing before. I was really nervous about it but my dad told me that nothing would happen or change because I was there but that they wanted the individual to remember there were real people behind their debts. I have mixed feelings about bankruptcy--it's a compassionate endeavor that is necessary in many cases due to illness, economy, etc. On the other hand creditors are left with literally nothing, which is sad; particularly when there are people who will charge, charge, charge and then just go to bankruptcy court out of habit--some people are habitual bankruptcy declarers--hard for me to really comprehend but I've seen it.

Anonymous said...

It is hard to file for anything, if you know what I mean. Filing for bankruptcy, divorce, custody, etc., is a very long process. You have to wait for 3 months, at the very least, before the court releases the orders. You have to make a lot of follow-ups. The KEY is to have a VERY GOOD LAWYER.

Louisa Matsuura