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.
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.
THE BANKRUPTCY COURTSIt is very
important for us to first understand what the bankruptcy courts
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