Bankruptcy Judge

Bankruptcy judge summary:

• A bankruptcy judge is responsible for determining a debtor’s eligibility to file bankruptcy.

• They hear bankruptcy cases and discharge eligible debts when the filer has met all the requirements of their case. 

• In the case of Chapter 13 bankruptcies, a bankruptcy judge has the discretion to dismiss a case if the filer stops making payments or doesn’t meet other requirements. 

Bankruptcy judge definition and meaning

Bankruptcy judges are judicial officers of U.S. district courts who oversee bankruptcy cases within their district. The number of bankruptcy judgeships is set by Congress. 

A bankruptcy judge has many jobs: 

• Look at bankruptcy petitions to make sure the debtor is eligible to file

• Hear and decide on requests related to a bankruptcy case

• Discharge (forgive) eligible debts when the person has met all the requirements of their case 

A bankruptcy judge is a court official. These judges have the authority to make decisions related to any aspect of a bankruptcy case. People who file for bankruptcy rarely meet the judge in person, but it's important to understand the role they play behind the scenes. 

Key aspects of a bankruptcy judge's role

Much of what happens in a bankruptcy case is administrative. In a Chapter 7 case, for example, the judge appoints a bankruptcy trustee who acts as a go-between for the debtor (the person filing bankruptcy) and their creditors. It's the trustee's job to take inventory of the debtor’s assets, sell what they're legally allowed to sell, and distribute the money to creditors. 

So what does a bankruptcy judge do? It's their duty to:

• Review bankruptcy petitions to determine if the person is eligible to file

• Approve repayment plans for debtors who file Chapter 13 bankruptcy

• Mediate disputes between creditors and debtors. For example, if a creditor wants to continue trying to collect a debt after someone files for bankruptcy protection, they would need to ask the judge to lift (cancel) the automatic stay. That's a law that stops collections while the case is active. The judge must decide whether to grant or deny the request. 

• Rule on issues related to automatic stay violations, if applicable

• Grant the final discharge of debts. Discharge means you're legally released from your responsibility to repay the debts in your petition.

A bankruptcy judge can also dismiss a case. Dismissal isn't the desired outcome. It means your case ended before any debts were discharged. Dismissal could happen for many reasons, including if you fail to pay your fees, fail to complete pre-bankruptcy counseling, or if the judge thinks you aren’t eligible for a discharge.

Chapter 7 bankruptcy judge

Chapter 7 bankruptcy makes it possible to eliminate certain debts so you no longer have to pay them. In a Chapter 7 case, the bankruptcy judge will:

• Appoint a trustee to handle the administrative tasks of the case

• Review your credit counseling certification, which is a requirement in a Chapter 7 case

• Review other qualifications to make sure you're eligible for Chapter 7, including your means test

• Hear any arguments raised by you or your creditors

• Rule on motions brought by either side

• Issue the final discharge, which could happen anywhere from three to six months after you initially filed your petition

You can't choose your bankruptcy judge in a Chapter 7 case. Which bankruptcy judge you’re assigned depends on where you filed your petition. 

Chapter 13 bankruptcy judge

In a Chapter 13 bankruptcy, you agree to repay your debts over three or five years. In this type of case, it's the bankruptcy judge's responsibility to:

• Review the details of your payment plan

• Resolve any disputes or issues your creditors may raise with the payment plan

• Approve your repayment plan

• Issue a discharge of your case once the payment plan is complete

The bankruptcy judge also has the discretion to dismiss your Chapter 13 case if your payment plan doesn't meet the requirements of the court, or if you stop making the required payments to the plan. Similar to Chapter 7, you can't choose your judge. The judge is chosen for you based on where you file your bankruptcy petition.