Many bankruptcy filers are extraordinarily nervous or even afraid of what will happen at their Meeting of the Creditors (or 341 Meeting), but the fear and uncertainty are almost 100% unwarranted.
What Happens at the Meeting of the Creditors?
Bankruptcy petitioners must attend a Meeting of the Creditors (sometimes referred to as the 341 Meeting).. Petitioners should bring identification and be prepared to answer a series of basic questions referencing their bankruptcy petition. At this meeting, the petitioner meets with the bankruptcy trustee handling their bankruptcy case. Creditors are allowed to attend and are also allowed to ask about financial matters, but very few ever appear. Most importantly, for those who are desperately worried about this aspect of filing bankruptcy, the vast majority of 341 Meetings last less than ten minutes. Now during these days of the pandemic, these meetings are on a conference call.
The Trustee’s Job at the Meeting of Creditors:
At the Meeting of Creditors, the bankruptcy trustee will verify your identity, review your bankruptcy paperwork for accuracy, and ensure creditors listed in the bankruptcy receive as much payment as possible by evaluating assets and property and making sure reported income is accurate. The trustee also looks for any unreported income or property or signs of bankruptcy fraud.
Trustee Responsibilities in Chapter 7 Bankruptcy:
During a Chapter 7 bankruptcy, the bankruptcy trustee has additional responsibilities. The Chapter 7 bankruptcy trustee sells any assets that are not exempt and distributes the funds received from the sale to the bankruptcy petitioner’s creditors.
Trustee Responsibilities in Chapter 13 Bankruptcy:
During a Chapter 13 bankruptcy, the bankruptcy trustee evaluates the proposed Chapter 13 repayment plan to ensure it’s acceptable and feasible. If the Chapter 13 bankruptcy trustee approves the repayment plan, the trustee is also responsible for monthly distributions of the plan payments to the petitioner’s creditors. The Trustee does not hold veto power over your plan proposal. It’s not uncommon for the trustee to object to a plan but the plan is ultimately approved by the Court.
When Does the Meeting of the Creditors Occur?
The Meeting of the Creditors or 341 Meetings is typically scheduled 30-40 days after the bankruptcy petition is filed. Your bankruptcy attorney will attend the meeting with you, and if you are nervous, ask your attorney to run through some of the common questions that may come up during the meeting.
No matter why you need to file bankruptcy, the law office of Kenneth C. Rannick P.C is ready to help you determine the best options in your situation. You don’t have to deal with the financial struggle alone. Bankruptcy can be an overwhelming process, but at the law offices of Kenneth C. Rannick P.C., you’ll work with Consumer Bankruptcy Specialists. We help relieve the stress, ensure all bankruptcy paperwork is appropriately filed, and work to expedite the bankruptcy process to get our clients a fresh financial start.