341 Meeting Of Creditors: What Is It And What To Expect In A Chapter 7 Bankruptcy Case?
When you file for Chapter 7 bankruptcy, you will likely have to attend only one court hearing with the Federal Bankruptcy Court. The hearing is called a 341 hearing or meeting of creditors. You cannot get through your Chapter 7 case without attending this meeting, but you might have questions about it. What is this meeting for, and what should you expect? Here are some of the answers you might be looking for as you prepare to file for Chapter 7.
The Purpose of the Meeting
The 341 meeting has two main purposes. The first purpose is for a bankruptcy trustee to meet with you can question you under oath. When you file your bankruptcy documents, the court will assign a trustee to your case. The trustee's role is to evaluate and process your case, and they might have some questions to ask you. They can ask their questions during this meeting while you are under oath to find the answers they need. If they have questions after the meeting, they can ask your attorney.
The second purpose is to provide your creditors an opportunity to challenge a discharge. Chapter 7 provides a discharge of qualifying debts. If you have a creditor that does not believe you should receive a discharge, they can attend this hearing. The court will send a letter to every creditor notifying them of your bankruptcy case and 341 hearing.
The Timing of the Meeting
The 341 meeting generally occurs within a month of filing a case. After your lawyer completes the paperwork and files it with the court, the court will assign a trustee and a 341 court hearing date and time. You must attend the meeting, as there are consequences if you do not. The main consequence is the court could dismiss your case.
What to Expect During It
As mentioned, the 341 meeting gives the trustee the chance to ask you questions. The trustee will need to verify several things, including your identity and your previous bankruptcy history. You should expect the trustee to ask questions about your identity, debts, and income. They might also ask questions about other things, such as whether you expect an inheritance or windfall of cash anytime soon.
Your attorney will accompany you to this hearing and will advise you during it. If you have questions about the Chapter 7 bankruptcy process or the meeting of creditors, talk to a bankruptcy attorney today.
