What Is The 341 Meeting Of Creditors In A Bankruptcy Case?

Bankruptcy code §341 requires that a hearing will be held any time there is a Chapter 7 or a Chapter 13 bankruptcy filed. Although it is called a meeting of creditors, the creditors virtually never show up. It’s really a trustee meeting with the individual who filed, along with their attorney, so that the trustee can ask questions to ascertain whether or not there are any types of assets available to pay off the debts. It’s an informal process that takes about five minutes.

Does The 341 Meeting Of Creditors Take Place For All Types Of Bankruptcies?

Both the Chapter 7 and Chapter 13 consumer bankruptcies require that a 341 hearing take place.

Should I Have Completed All Mandatory Classes Before The 341 Meeting In A Bankruptcy Case?

There are 2 mandatory bankruptcy classes. The first one has to be completed before the case is filed but the second one is not required to be completed until 45 days after the meeting of creditors. However, it is a good idea to take the second course before the hearing because you are not eligible to get rid of your debt through a discharge if you do not complete the course.

What Actually Happens At The 341 Meeting Of Creditors?

There will be a trustee assigned to the case, who is acting as a middleman between the creditors and the debtor. That trustee is going to ask a series of questions to find out whether or not there are any assets or money available that can be used to pay on the debt. They want to make sure that there isn’t any money coming to you, like personal injury settlements or inheritances that aren’t protected under the exemptions of the bankruptcy code.

Will I See A Judge At The 341 Meeting Of Creditors?

In most bankruptcy cases, you will never be in front of a judge. It’s an informal process, where you are in a room separate from the courtroom with a trustee, not a judge.

How Can I Prepare For The 341 Meeting Of Creditors?

Most people don’t have to prepare for the meeting. It is basic information you are already going to be familiar with.

At What Point In The Bankruptcy Process Does The 341 Meeting Of Creditors Take Place?

341 Meetings are typically scheduled four to eight weeks after the initial bankruptcy paperwork is filed.

Who Is All Present At The 341 Meeting Of Creditors?

Typically, the people present at the 341 Meeting would be the trustee, the debtor, and the attorney.

What Questions Will The Trustee Ask Me At The 341 Hearing?

The trustee will ask questions regarding finances to see whether or not you’ve paid any friends or relatives money within a year of filing the bankruptcy, which is prohibited, or if you took out additional debts right before the filing of the bankruptcy, which is also prohibited. The trustee will ask if you’ve transferred any type of assets within two years of the filing of the bankruptcy, and whether you have any money or assets available or coming to you that could be used to pay your debt.

What If I Don’t Know The Answers To Some Of The Trustee’s Questions At The 341 Meeting?

It would be unusual for a debtor to be unable to answer the types of questions asked at a 341 Meeting. If, for some reason, you do not know the answer to a question, let the trustee know that you need time to collect the information. Then provide the answer to your attorney to pass on to the trustee.

What Happens Once The 341 Meeting Of Creditors Is Over?

The bankruptcy code requires a 60 day waiting period after the meeting of the creditors before a judge is allowed to enter a discharge order. Normally, waiting is all that is required. If you have not taken the second bankruptcy course, then you will need to take that before the 60 days expires.

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