Bankruptcy Judge
Bankruptcy and the judiciary
We are all well aware of what is bankruptcy. It is basically a process by which a person or a company declares itself insolvent, so that there is no more pressure from any of its creditors to repay the money lent by them. It should be noted here that when a person or a company wishes to declare itself bankrupt, it has to undergo all the legal procedures right from filing the application for bankruptcy up to the settlement of the whole matter.
Thus, without judiciary, it is not possible for any person or the company to declare itself bankrupt without the bankruptcy judge because a person has to file an application in the bankruptcy court or the other courts of law in the various countries. Thus, the role of judiciary also becomes very important as far as bankruptcy is concerned as the judiciary gives all the verdicts only. One of the important parts of the judiciary concerned with the bankruptcy is the bankruptcy judge. Let us discuss more about it in our next part of discussion.
Bankruptcy judge
There are bankruptcy judge in the different bankruptcy courts of any country. The role of the bankruptcy judge is to investigate the whole matter of bankruptcy and then decide on the matter accordingly. It is also to be noted here that not any person can become the bankruptcy judge, who is having the necessary qualification in terms of law education. The most important aspect that is looked in to when the bankruptcy judges are given appointment is the experience they are having in relation to the education. The bankruptcy is a very sensitive matter and the judge concerned with it should be highly experienced one so that he can look into the various intricacies of the matter. Any false verdict given may jeopardize the interests of the various creditors of the bankrupt person or the company.
The role of bankruptcy judge
The role of the bankruptcy judge has gained very much importance in the past few years because the number of cases of bankruptcy has also increased. Many a times, a person or a company declared itself bankrupt to avoid its various creditors and they are the ones with no assets that can be attached. Thus, a bankruptcy judge has to make serious contemplations before giving any verdict on the issue of bankruptcy. Let us see, how the role of the bankruptcy judge is so much important.
First of all, let us see the role of the bankruptcy judge after the petition has been granted. It is quite obvious that once the judge on bankruptcy has granted the petition, the next step would be the disposition of the various properties of the insolvent. Also, there are counsels for the debtors as well the creditors. Thus, both of these try to incline the bankruptcy judge in their favor so that the favor may be gained. This essentially goes on up to the last hearing of the case.
Thus, a bankruptcy judge has to keep his cool and should decide on the merits of the issue rather than the capabilities of the counsels of both the parties of the insolvent. After hearing from both the sides, many a times the bankruptcy judge has to take decisions on the reorganization plan, the various request that are made for the depositions of the properties etc. Any step taken pertaining to any of the two should be taken cautiously so that the interest of any party is not hurt.
As said above also, the counsel of the various parties tries their maximum to incline the bankruptcy court in their favor. There are also many administrative issues on which these counsels try to convert the bankruptcy judge. A bankruptcy judge should not get swayed by the different statements of the
various counsels and should act as per the law. It is to be noted that there are many people who are affected by any decision given by the bankruptcy judge. The most important issue with respect to the judiciary proceedings is that it has been observed many a times that the bankruptcy judge is also drawn into the proceedings despite the fact that the trustee of the bankrupt person or the company is present. Also, the same judge appoints the trustee. This also happens that the counsel make frequent requests for the involvement of the judge in the proceedings of the case for the purpose of the advice and the guidance. A bankruptcy judge should take all the steps as are given in the bankruptcy code of a particular country. Also, while doing so, the bankruptcy judge himself becomes the judicial officer. Many times it is blamed that the judge is working in conjunction with the trustee appointed by the bankruptcy judge himself and is working for the benefits of the bankrupt company or the person. Thus, a bankruptcy judge should take all the steps very cautiously. Also, it is quite obvious that in such circumstances, the judicial impartiality would definitely be questioned. This is the reason why the various persons that draft the bankruptcy code for any country that the judiciary is not at all involved in such matter at all have taken every care. Also, in the present times, in almost all the countries, the role of the bankruptcy judges in the administrative matter has been greatly reduced. Now, the bankruptcy judges are not at all allowed to take part in any informal conduct of the affairs of the bankruptcy cases.
One of the important roles of the bankruptcy judges is also the reinstalling the business spirit of the bankrupt person or the company. Many a times, the bankruptcy judge gives verdict for the sale of all the attachable properties of the company or the person that has been declared bankrupt. He also gives verdict regarding the restoration of the business activity afresh. While giving such a verdict, he should see if there is really any business acumen in the person or the promoters of the company so that these times, the interests of the various creditors of the company are not hurt.
Thus, there are many important roles that are played by the bankruptcy judge.
So, bankruptcy judge should act carefully
Thus, it can be said that the role of the bankruptcy judge in the whole matter of bankruptcy is very important and he should take any decision very carefully. The decision taken should be such that it not only satisfies the interest of the various concerned parties but also the honor for the judiciary is also intact.
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