Do not be alarmed if you receive a Notice of Status Conference in your mail or e-mail if you are involved with a bankruptcy filing. This is normal. How do status conferences work and what should you expect to happen?
A status conference can happen in a few ways. For instance, the Bankruptcy Code requires a status conference in all Subchapter V Chapter 11 cases. So once we file a petition for our client, the court will set a conference a few weeks out and ask for a status report before the case gets too far along. We routinely prepare these status reports and generally do not expect a lot of questions from the Court if they are well prepared.
The Court can also set a status conference on an adversary action (a lawsuit within the bankruptcy) or a contested matter, where two or more parties disagree about something. Let’s say that a bank is moving to obtain relief from the bankruptcy stay, and the bank is arguing that there is no equity in the property. The debtor or trustee files a report and argues that there is lots of equity. The Court could have a status conference to determine a timeframe for resolving this issue.
Bankruptcy is usually very transactional with a lot of paperwork. Many debtors never see or meet their bankruptcy judge, especially in Chapter 7 cases. But judges are on the bench to resolve disputes through litigation. When disputes happen, the Court can use the status conference to either receive a report of what’s gone on and what the parties think should happen, or go through the court’s questions at a hearing. By understanding the issues and the time frame needed, the court can monitor the matter and set the issue for a later trial (or what we call an Evidentiary Hearing in bankruptcy court).
Seeking Professional Advice
If you have questions about bankruptcy or what to expect at a status conference, or after the conference, contact a bankruptcy attorney familiar with these conferences and what to expect to get a resolution in litigation; or visit us at www.kansascitybankruptcy.com. At WM Law, we are not afraid of litigation. At W M Law, we are “Here to Help”.
