Bankruptcy Judge

Bankruptcy Judge summary:

• A bankruptcy judge is a federal judicial officer. They oversee and make all decisions related to bankruptcy cases. 

• If you file for bankruptcy, a bankruptcy judge will oversee your case.

• Many people who declare bankruptcy will never meet the judge.

Bankruptcy Judge Definition and Meaning

Bankruptcy judges are the main decision-makers in everything connected to bankruptcy proceedings. Bankruptcy judges review applications, approve repayment or reorganization plans, and rule on disputes. 

Key Features of a Bankruptcy Judge

Bankruptcy judges are qualified lawyers who must either have practiced for at least five years or worked in a related job. They are federal judges who usually serve a 14-year term. The fact that bankruptcy courts are federal means proceedings are fairly similar from state to state. 

What to Expect From a Bankruptcy Judge

When you file for bankruptcy, the court will step in and reorganize or liquidate assets to get rid of some debts. That means that you might have to give up some of the things you own. The court will sell them and give the money to your creditors. 

You’re generally allowed to keep your clothing and household goods, a modest car, and some other items (these are called bankruptcy exemptions). But you normally wouldn’t be allowed to keep multiple cars or a second home. There’s a federal list of bankruptcy exemptions, and each state has its own list. You are allowed to choose the list that would benefit you more.

You'll need to tell the court about your debts, income, and assets. The judge will oversee the process and have the final say. 

Most people who file for bankruptcy under Chapter 7 or Chapter 13 never come into direct contact with a bankruptcy judge. Instead, you'll deal with a court-appointed bankruptcy trustee. The trustee will look closely at your finances and lead the meeting of creditors, which is a required step in the process.

The bankruptcy judge oversees the bankruptcy trustee.

There are several rules in place to make sure bankruptcy judges are fair. For example, a bankruptcy judge can't rule on a case they’re directly involved in. It’s also their job to be fair to creditors who want to be repaid. The code of conduct demands they treat everybody involved—including you—with respect.