Consumer bankruptcy cases are not litigation. Read that a few times, and let it sink in.

The truth is that consumer Chapter 7 and Chapter 13 bankruptcy is largely an administrative matter. Sure, bankruptcy cases are filed in the U.S. Bankruptcy Court but that’s pretty much where the court-part ends. In a standard Chapter 7 case the debtor (in other words, the person filing for bankruptcy) goes to a brief meeting with a trustee and never sees a judge. In fact, the U.S. Bankruptcy Code specifically states that the judge is not allowed to preside over this meeting, which is called a “Meeting of Creditors.”

The Meeting of Creditors is designed to determine whether the debtor has disclosed all of his or her assets and liabilities, and to inquire as to the assets that can be liquidated for the benefit of creditors. Creditors are allowed to show up and ask questions, but that seldom happens. With so many bankruptcy cases filed, creditors simply could not afford to send a representative to every Meeting of Creditors.

In Chapter 13 cases (the ones in New York, at least) there is one court hearing, called a Hearing on Confirmation. This is presided over by the judge, but it’s just a simple hearing to make sure that the Chapter 13 Plan is adequate under the law.

Most consumer bankruptcy lawyers got into the field because they knew it didn’t require any courtroom work. No trials, nothing like Law & Order or Perry Mason, just some administrative work and a thorough knowledge of the Bankruptcy Code.

But sometimes, people get sued when they go into bankruptcy. Maybe they incurred a debt that a creditor claims should not be discharged, maybe an asset transfer is claimed to be fraudulant . . . in fact, there are a host of reasons why someone would get dragged into a court battle.

There are other times when someone who files for bankruptcy may have the right to drag someone else into court. Creditors violate the automatic stay and discharge injunction, a Proof of Claim in a Chapter 13 case may be improper, a mortgage servicer may have improperly tagged bogus charges onto a loan . . . once again, the list goes on and on.

If you’re a consumer bankruptcy lawyer chances are good that you don’t want to bring anyone into court. And if your client is sued in bankruptcy, you propbably don’t want to handle the case. If you’re the consumer, you may find yourself without a lawyer who is willing and able to help you out in a tough spot.

This site is designed to help give a flavor of the types of bankruptcy litigation that exist, how to spot a problem before it blows up in your face, and an introduction to how I may be able to help. If you have a problem, call me in my office at 212-785-1136 x704.