Do I Have to Go To Court in Bankruptcy?
- Shawn A. Stack
- 1 day ago
- 2 min read
Most people who end up insolvent are good, honest folks who simply got in over their heads.
They aren't fraudsters.
They aren't hustlers.
They aren't tricksters.
They're neighbours.
Coworkers.
Family members.
And one of the biggest fears many people have when considering bankruptcy is that they will have to go to Court.
The good news is that most people never do.
If this is your first or second bankruptcy, and you do what is required of you during the process, there is a very good chance you will never see the inside of a courtroom.
Your discharge will simply be issued through your Trustee's office.
Prior to changes to the law in 2009, many more people were required to attend Court to obtain their discharge.
The law was amended to reflect the reality of modern consumer credit and insolvency.
Today, it is generally only people filing bankruptcy for a third time, or those who fail to complete their duties, who find themselves before a judge.
Going to Court can sound intimidating.
It's a bit like being sent to the Principal's Office in elementary school.
Everyone has heard stories.
Most of them are worse than the reality.
The Court is not there to punish people who have experienced financial difficulty.
Bankruptcy is a rehabilitative process.
The Court's role is to facilitate that rehabilitation.
If you do what is required of you, there is a very good chance you will never need to attend Court at all.
And if you do, it is not because you are a bad person.
It is because the process requires a decision that only the Court can make.
The Courthouse is not a house of punishment.
It's a house of redemption.
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