Before you can receive a bankruptcy discharge wiping out qualifying debt, you must be examined under oath by a bankruptcy trustee at a hearing called the meeting of creditors or 341 hearing.
The trustee’s job includes verifying your identity and examining your paperwork to ensure your responses are truthful. The primary purpose of the trustee involves locating property and assets and selling them for the benefit of creditors.
After the bankruptcy trustee reviews your identification, the trustee can ask questions about your bankruptcy papers and financial affairs while you are under oath. Creditors can also ask questions but rarely appear.
Usually, the trustee obtains all needed information in less than 10 minutes and concludes the creditors' meeting. The trustee will continue the meeting to another day if you forget your identification or if the trustee needs additional documents or more time for questioning.
Learn about similarities and differences between the Chapter 7 bankruptcy meeting of creditors and the Chapter 13 creditors meeting.
Yes. The trustee will ask you simple questions to ensure everything in your bankruptcy petition is complete and accurate. The trustee is required to ask standard questions of each debtor but might also ask specific questions about your case.
The trustee can ask you about anything related to your financial situation, and most questions will involve your debts, assets, income, expenses, and, importantly, prior transactions. The trustee will be looking for information that could increase recovery for your creditors. For instance, you’ll likely be asked whether you gave away property or sold an asset for less than its actual value.
The trustee might ask about discrepencies between the information in your bankruptcy petition and your supporting documents, such as tax returns and paystubs. However, this type of questioning is rare. Your bankruptcy lawyer is responsible for maintaining consistency in your filing and ensuring such issues don’t arise.
The initial questions you'll be asked are predictable because trustees must ask about particular areas. The following are some of the most common trustee questions asked at the meeting of creditors:
Would you like to see the specific questions you'll be asked? Here's where you'll find the official 341 meeting of creditors questions.
The trustee will ask about any unusual part of your bankruptcy case. Your bankruptcy lawyer will likely be able to predict specific questions the trustee might ask and, in many instances, resolve issues before the meeting.
Did you know Nolo has made the law accessible for over fifty years? It’s true, and we want to ensure you find what you need. Below, you’ll find more articles explaining how bankruptcy works. And don’t forget that our bankruptcy homepage is the best place to start if you have other questions!
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]]>Even so, it’s common for people to worry about the meeting. The simplest way to avoid being overwhelmed is to know what to expect before you go. Read on to learn more about what happens at a Chapter 13 bankruptcy meeting of creditors.
The Chapter 13 trustee is responsible for ensuring that you’re paying all of your disposable income to your unsecured creditors (creditors whose debt isn’t secured by collateral, such as most credit cards) through your repayment plan.
The Chapter 13 meeting of creditors allows the bankruptcy trustee and any creditors who attend to do the following:
The meeting is more informal than a typical hearing. A judge won’t be in attendance. Instead, the trustee will conduct the meeting, and it’s likely to be in a conference room rather than a courtroom.
Here’s who might be there:
Your creditors. Creditors can come to the meeting and ask questions, but most won’t attend. A creditor who suspects bankruptcy fraud might send a representative to gather information. Other adversarial creditors, such as a disgruntled business partner or an ex-spouse, tend to make appearances, too. These creditors can raise the intensity of a meeting, but you shouldn’t worry about it too much—most people know if they risk an appearance by an angry creditor.
The public. The meeting of creditors is open to the public, so anyone can observe your hearing. Further, the other Chapter 13 debtors will typically be in the same hearing room during your examination. Here’s the benefit: If you’re not first on the calendar, you’ll be able to watch the examination take place and know what to do when it’s your turn.
You can expect the trustee to schedule other debtors during the same meeting hour. When you arrive at the hearing, you’ll want to check the calendar to see where your case falls. The calendar will be posted next to the door or in the hearing room.
The trustee will likely start the meeting by taking a roll call. Next, the trustee will explain the meeting procedures. During that time, it’s a good idea to take out your identification and proof of social security number so you’ll be ready to present it to the trustee when your case gets called.
Here’s what will happen when it’s your turn.
It’s the Chapter 13 trustee’s job to verify the information in your petition and make sure you’re paying all of your disposable income to your unsecured creditors.
If a bankruptcy attorney represents you, your lawyer will probably be able to predict what the trustee will ask you. A straightforward hearing will take between five and ten minutes.
A Chapter 13 trustee satisfied with your paperwork and repayment plan will conclude your hearing. You won’t be required to attend another hearing before the trustee.
A trustee who needs more information can continue the hearing to another date. You might not need to show up if you resolve the issue beforehand.
After the meeting, a trustee who believes that you should be paying more to your unsecured creditors will likely object to the confirmation of your Chapter 13 repayment plan by filing a motion to dismiss.
If you receive a motion to dismiss, you’ll need to do one of the following things:
You’ll likely have limited time to file an opposition to the trustee’s motion with the court. You should plan to argue your position at the confirmation hearing. Learn how to oppose a Chapter 13 motion to dismiss.
Chapter 13 is a long process that takes three to five years to complete. Find out what to expect in Chapter 13 bankruptcy by reading the following:
A Chapter 13 bankruptcy is more complicated than a Chapter 7 case, so much so that it’s almost impossible for someone to complete without a bankruptcy attorney. If you’re considering filing for Chapter 13, you’ll want to meet with a bankruptcy lawyer, and many offer a free initial consultation.
Did you know Nolo has been making the law easy for over fifty years? It’s true—and we want to make sure you find what you need. Below you’ll find more articles explaining how bankruptcy works. And don’t forget that our bankruptcy homepage is the best place to start if you have other questions!
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We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.
]]>Your creditors will also have the opportunity to ask you questions about your financial affairs and the information in your bankruptcy papers but rarely do. Read on to learn more about what happens at a Chapter 7 meeting of creditors.
The Chapter 7 meeting of creditors (also called the 341 hearing) is a meeting at which the bankruptcy trustee and your creditors get to ask you questions under oath about your bankruptcy petition and the documents you’re required to provide the trustee. The creditors’ meeting is essentially a hearing used to verify that the information contained in your bankruptcy papers is accurate and complete.
You’ll also be required to prove your identity by presenting two forms of identification, such as a driver’s license or another government-issued identification, such as a military identification card or passport and your social security card. These steps prevent and identify fraudulent filings.
A judge won’t preside over the meeting of creditors. In fact, most Chapter 7 debtors don’t see a judge at any point throughout the case. Instead, the Chapter 7 bankruptcy trustee appointed in your matter will conduct your meeting of creditors.
The trustee will likely schedule up to ten other bankruptcy filers for the same hour, so other Chapter 7 debtors will observe your hearing while waiting for their case to be called. (This might not be the case if you're scheduled for a virtual hearing.)
You’ll want to check the calendar to see where you fall on the schedule. If you aren’t first, you'll be able to observe the process ahead of time if you attend in person and possibly if you're scheduled for a virtual hearing, depending on how your court sets up the call.
The bankruptcy court will also notify your creditors of the meeting of creditors. However, creditors rarely attend unless they suspect you’re hiding assets or committing bankruptcy fraud.
The creditors who appear most often are angry ex-spouses and former business partners, creditors who want to know whether you intend to return collateral, such as a financed car, and those creditors who were suing you in state court before your bankruptcy filing. Learn about lawsuits stopped by bankruptcy.
The court will send you and your creditors notice of the 341 meeting of creditors. The court will set the date between 21 and 40 days after your bankruptcy filing date.
Traditionally, meetings occur in person in a meeting room at a federal building or an offsite location. Other bankruptcy filers will appear at the same meeting time, so you’ll want to check the docket to see where your case falls on the schedule. However, you might attend virtually if social distancing requirements are in place.
You can view a blank copy of the notice of the meeting of creditors form by visiting the U.S. Court’s bankruptcy website.
Absolutely. The notice provides you with lots of essential information, so it’s a good idea to keep it in a handy place. For instance, you’ll find the following:
You’ll use the trustee’s contact information to forward the 521 bankruptcy documents you’re required to provide to the trustee before the 341 meeting of creditors, such as paycheck stubs, bank statements, and tax returns.
You’ll also need your bankruptcy case number to complete your debtor education course, the class you must take after filing for bankruptcy.
Finally, you’ll provide the case number and the filing date to any creditor who might call. After the creditor verifies your bankruptcy, it’s unlikely that the creditor will call again.
The notice provides important deadline dates for your creditors. For instance, a creditor will use information in the notice to find out when to object to:
The court will include another deadline date if your case is an asset case, meaning there will be money to distribute to creditors. It’s the last day a creditor can file a “proof of claim” form. A creditor uses the proof of claim form to apply for payment on time.
The creditor will list the type of debt, the date incurred, the total amount owed, and other information on the form. After the deadline expires, the trustee will examine each claim before dispersing payment. You’ll have the opportunity to review and object to claims, too.
The bankruptcy trustee is responsible for more than conducting the 341 meeting of creditors. For instance, the trustee must:
Learn what happens when the bankruptcy trustee suspects fraud.
To prepare for the meeting of creditors, the trustee will review your bankruptcy paperwork and the 521 documents. The trustee can also ask for other financial papers, such as:
Some trustees will accept the documents by email, and others will require you to upload them to a secure website or send them by mail.
You must bring photo identification and proof of your Social Security number. Otherwise, the trustee will likely do one of the following things:
Also, bring any documents you don’t submit to the trustee in advance. Because the trustee will need time to review the new records, expect the 341 hearing to be continued. However, many trustees will cancel the continued appearance if everything appears in order and you provide any other documents the trustee asks for beforehand.
Before the COVID-19 pandemic, 341 meetings occurred in person. However, meetings are being held virtually as of the time of writing, so unless the current social distancing requirements change, you’ll attend online.
The trustee will examine you under oath after calling your case. Before your examination can begin, you’ll provide your identification and proof of social security number to the trustee.
If you appear virtually, you’ll likely forward copies of your identification to the trustee before the meeting. Otherwise, you’ll present it to the trustee once you’re seated at the meeting room table at the front of the room.
The Chapter 7 bankruptcy trustee’s role at the meeting of creditors is to verify the accuracy of the information disclosed in your bankruptcy papers. Since a Chapter 7 trustee is authorized to sell your “nonexempt assets” or the property you can’t keep for the benefit of your creditors, most questions will involve your assets.
When the Chapter 7 trustee calls your matter, the trustee will begin by asking you a series of standard questions, such as whether:
It’s common for the trustee to ask questions particular to your case. Your attorney will probably be able to predict the areas of inquiry in advance and might attempt to resolve any issues before the meeting.
When you file for Chapter 7 bankruptcy, creditors can also attend the meeting of creditors and examine you under oath. However, since time is limited, creditors can’t conduct a lengthy examination at the creditors' meeting. If a creditor needs more time, many trustees will continue the meeting to another day.
Typically, creditors ask about the nature and location of assets and other financial information. You should be aware that a creditor who shows up is likely assessing whether it makes sense to bring an action against you to dispute the discharge of the creditor’s debt and will use evidence gathered at the meeting to its advantage.
Most debtors aren’t surprised when a particular creditor appears. For instance, it’s common for disgruntled business partners and ex-spouses to attend the hearing.
A creditor with a “secured claim” or a debt guaranteed by collateral, such as a car, or a creditor who believes you breached the presumption of fraud rules by purchasing luxury goods on credit shortly before the filing might send a lawyer to appear, too.
In the latter cases, the creditor’s representative will likely try to settle the matter in the hallway after the meeting.
The bankruptcy trustee “concludes” or ends the meeting if the trustee doesn’t need any further information or documentation. You won’t need to come to another hearing, and you'll receive your “discharge” or the order erasing qualifying debts after satisfying all other requirements.
However, if you forgot your identification, or the trustee or a creditor requires further information, the trustee will set another hearing date.
If you provide the requested documentation before the continued meeting date, the trustee might take the continued meeting off the calendar. But, if the trustee has more questions, you’ll have to go to the next hearing.
If you don’t attend your meeting of creditors at its scheduled time, the court will dismiss your bankruptcy case. If you can’t make your meeting of creditors, notify the trustee immediately. Whether your hearing will be rescheduled will likely depend on your reason for missing it. For instance, while work and travel commitments usually aren’t compelling, a trustee will probably continue a case for one of the following reasons:
The trustee might allow you to attend telephonically, too.
If the court dismisses your case, you can usually refile immediately. However, you lose the automatic stay when you refile for bankruptcy within one year of dismissal. In such a case, the automatic stay in the new matter will only last 30 days. You’ll need to file a motion to extend it before it expires to keep its protection.
Did you know Nolo has been making the law easy for over fifty years? It’s true—and we want to make sure you find what you need. Below you’ll find more articles explaining how bankruptcy works. And don’t forget that our bankruptcy homepage is the best place to start if you have other questions!
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Helpful Bankruptcy Sites |
We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.
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