WHAT IS THE MEETING OF CREDITORS?
The meeting of creditors (pursuant Section 341 of the Bankruptcy Code) is a meeting that occurs approximately 25 to 40 days after a bankruptcy case is filed.
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This article discusses what typically occurs at a meeting of creditors in a Chapter 7 case.
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Who is present at the meeting?
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Present at the meeting are generally the bankruptcy debtor, the debtor's attorney, the bankruptcy trustee assigned to the case, as well as any creditors who desire to attend.
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Do I have to attend?
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A bankruptcy debtor's attendance at the §341 Meeting is mandatory and required to receive a discharge of debts.
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The bankruptcy trustee will call your case. At that time, you and your attorney go forward and, in most cases, sit at a table where the bankruptcy trustee is also sitting. The trustee then places you (and your spouse, if filing jointly) under oath. The meeting is recorded.
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You then produce
and the trustee
verifies your identification presented (normally a driver's license and
evidence of Social Security number).
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The bankruptcy trustee will ask you certain questions. Most of the questions are straightforward.
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The bankruptcy trustee is generally seeking to verify and confirm: (1) That the information in the bankruptcy petition is true and complete, and (2) That there are no errors or omissions in the bankruptcy documents.
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Any creditor who
attends may ask
you questions as well. However, creditors rarely appear at
the meeting of creditors.
Listen carefully
to the questions. Most importantly, answer the
questions truthfully.
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Questions will relate to the information in your bankruptcy petition, schedules and statement of financial affairs. Since the bankruptcy papers are detailed and signed under penalty of perjury, the questioning is brief in most cases -- just a few minutes in length.
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Typically the trustee always asks if you read the bankruptcy papers
before you signed them, and whether the documents accurately lists all
assets and debts. He or she might ask how you valued certain
property listed on your petition, especially if you own real estate.
Depending on the trustee, the district where the bankruptcy
is filed, and the facts of your case, other questions will be asked as
well. As a bankruptcy attorney, one of the ways that I help
my clients prepare for the meeting is by conducting a simulated
meeting of creditors in my office beforehand.
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As long as you tell the truth, cooperate with your attorney beforehand, cooperate with the trustee at the meeting, the meeting itself ought not create an obstacle to receiving a bankruptcy discharge.
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NOTE: What happens at
a §341 Meeting of Creditors varies in from
district to district across the United States. In order to be
prepared for your meeting, you need to meet and talk with your lawyer
about what to expect in your particular district.
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