The 341 Hearing
When you file for Chapter 7 or Chapter 13 Bankruptcy, the first step is the meeting of creditors. This is also known as 341 hearing. In this meeting, the lawyers, a trustee, and creditors discuss your bankruptcy petition. The 341 hearing or meeting of creditors is supervised by the trustee.
Purpose of Meeting of Creditors
Before the court approves of your debt discharge under Chapter 7 or Chapter 13 bankruptcy, it needs to verify your petition. The 341 meeting of creditors allows the court’s representative, called the bankruptcy trustee, to meet with you. It also helps the court complete any needed steps and clear up any questions.
The purpose of a 341 hearing is to make sure that everything you wrote in your bankruptcy papers is correct. It also gives the trustee and creditors a chance to ask you questions about the bankruptcy forms and documents. [1] Sometimes, creditors ask more detailed questions about your financial situation during this meeting.
Meeting with creditors is bound to be nerve-racking. It is best to be prepared by knowing what to expect at the meeting. Let’s answer some common questions…
When And Where Is the Meeting of Creditors Scheduled?
After filing for bankruptcy, you will receive a letter from the court. This letter contains the details of the day and time of the meeting. It also contains information about the bankruptcy trustee and other important details about your case, such as your case number.
The meeting usually takes place in a courthouse. Make sure you arrive well before the scheduled time, as parking and finding the room where your hearing takes place can take considerable time.
How Should I Prepare for the Meeting of Creditors?
Before your meeting, you should carefully check your bankruptcy petition. If you notice any mistakes or something accidentally left out, you should fix it by filing an amendment before the hearing, if possible. If not, then tell the trustee about the issue at the hearing. Also, take any document along that reflects a change since you filed the petition.
Make sure that the name you have used on the bankruptcy petition is the same as that on your driver’s license, passport, or other government ID. At the hearing, you will need to show one of these IDs and proof of your Social Security number. If your name does not match, you may need to change your petition and possibly come back again.
Who Are the Participants in the Meeting of Creditors?
Whoever files for bankruptcy has to attend the meeting of creditors. In case of a joint bankruptcy, both spouses must attend. Your lawyer and trustee will also be present at the meeting. A judge is not present at the meeting.
All your creditors are also invited. However, they usually do not show up. They usually come if there is a disagreement about where your assets are or whether they are covered by insurance. These creditors might be thinking about taking you to court, and what you say in this meeting could be used in their case.
Proceedings of the Meeting of Creditors
There are a number of meetings scheduled on the same day so each meeting is pretty short. Your meeting with the trustee and creditors will last about five minutes. This meeting is recorded.
Taking Oath
The meeting starts with swearing-in. The trustee asks you to prove your identity using your social security number and photo verification.
Verifying Bankruptcy Petition
You will be asked some questions to verify your bankruptcy petition. Even though your attorney is present with you, all the questions will be directed towards you. The majority of questions will be about your assets, finances, and your bankruptcy petition.
Questions Asked By the Trustee
The trustee will ask whether you have reviewed and confirmed the accuracy of your paperwork, and if there are any updates. You will also be asked about your financial details, such as income, expenses, and debts.
The trustee may also inquire if you have sold or transferred anything recently, whether you have owned a business, or if you have been in a vehicle accident. Other questions will cover potential inheritances, how you valued your house and car, and whether your tax return is correct. They will also ask if you have filed for bankruptcy before, whether you owe child support or alimony, and your current income.
The trustee’s role is to make sure your creditors get as much money as they can. They will look at your belongings and property and check that the income you reported is accurate. The trustee will also search for any income or property you may not have listed and watch for signs of fraud during the bankruptcy process. [2]
Be truthful in your answers and stick to the facts. You can ask your attorney for help if you have any concerns.
Questions Asked By the Creditors
If a creditor is attending your meeting of creditors, they might also ask you questions while you are under oath. The creditors will question you about any recent credit card charges or cash advances. They may question you about any differences between what you disclosed in bankruptcy and the information you put on your credit application, like your income.
Creditors may use the hearing as a chance to gather information and possibly challenge your filing. If they have more at stake, they could be considering legal action based on what is shared in the hearing.
If you are considering filing for bankruptcy, contact Frego & Associates today.
FAQs
A 341 hearing is another name for the meeting of creditors where the trustee, lawyers, and creditors discuss your bankruptcy petition.
The trustee will ask about your financial details, such as your income, expenses, debts, and if you’ve sold or transferred anything recently.
The meeting usually lasts about five minutes.
Creditors rarely attend, but they might show up if there’s a dispute about your assets or finances.
Bring your government ID, proof of your Social Security number, and any documents that reflect changes to your financial situation.
Sources:
[1] 11 U.S.C. § 341 – U.S. code title 11. Bankruptcy § 341 | Findlaw. (n.d.-a). https://codes.findlaw.com/us/title-11-bankruptcy/11-usc-sect-341/
[2] 341 meeting. (n.d.). LII / Legal Information Institute. https://www.law.cornell.edu/wex/341_meeting
