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Bankruptcy Proceedings

Definition - What does Bankruptcy Proceedings mean?

Bankruptcy proceedings is the term given to the cumulative court interaction that takes place on behalf of and by a debtor when a bankruptcy is filed and approved. The entire process from the initial filing through to the assignment of bankrutpcy is considered part of the proceedings. This is a usual term that is attached to court visits and bankruptcies consist of a high proportion of actual in court visits for the debtor. In some instances, the creditors do not need to appear and is instead represented by the Trustee. However, in all proceedings the debtor must appear during the beginning of the case and the final hearing. Many times, an attorney can appear at any other hearing on behalf of the debtor and the debtor doesn't have to appear.

Justipedia explains Bankruptcy Proceedings

Depending on which type of bankruptcy is filed the length of the proceedings can be different. For example, a Chapter 7 would be much faster than either a Chapter 11 or Chapter 13 due to the amount of assets and liabilities held by the debtor as well as the total number of creditors that would need to be dealt with separately. If the creditors agree to repayment terms, the proceedings will go faster. However, it is often the case that the amount offered is disputed and the judge has to make a ruling on individual creditor's repayments,which stretches the proceedings out in time.

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