What Happens After Your Meeting of Creditors?

After attending the meeting of creditors, you're often much closer to achieving your goal of receiving the debt discharge, the legal order that eliminates qualifying debts and gives you a fresh financial start. This article will help you understand exactly what happens after your first 341 meeting, whether you've filed Chapter 7 or Chapter 13. It walks you through the next steps, deadlines, and other requirements you need to understand to complete your bankruptcy case successfully.

What Happens at the 341 Meeting of Creditors?

Although Chapters 7 and 13 proceed in very different ways after the 341 hearing, what occurs at the 341 meeting itself is relatively similar. The bankruptcy trustee, the person who manages your case, conducts the 341 meeting.

The trustee will verify your identity and question you about anything unclear in your bankruptcy schedules and forms. The process usually takes about 10 minutes in Chapter 7, and about 30 minutes in Chapter 13 because additional time is often needed to discuss the Chapter 13 plan provisions.

Does the 341 Meeting of Creditors End the Same Day?

More often than not, the trustee concludes the hearing at the end of the initial session, and the case moves on to the next phase of bankruptcy. This scenario is the most ideal as it starts the clock ticking on the time allowed for objections by the trustee and creditors.

However, in some instances, the trustee needs additional information and must set a date to meet again. Keeping the meeting open not only gives the trustee and creditors more time to object to a discharge, but also extends the time until a Chapter 7 case will end, and results in extra work in a Chapter 13 case.

How to Avoid a 341 Meeting Continuation: Prepare

Preparing adequately can significantly decrease the chances of a 341 meeting continuance. Here are a few ways you can control the situation and avoid a case delay.

• Have your identification ready. The most common cause of 341 meeting continuances is failing to produce a photo ID and proof of your Social Security number when it's due (shortly before a virtual meeting or the day of an in-person meeting). Don't wait until the last minute to discover you can't find your Social Security card—you won't have sufficient time to order a new one before the meeting.
• Produce documents early. Provide the trustee with the required "521" documents at least a week before the meeting, if not sooner. These documents include tax returns, pay stubs, and bank statements, and are required by 11 U.S.C. § 521. However, you should expect the trustee to require additional documents. Providing them early in the process gives the trustee more time to review them and possibly reach out to you before the meeting if additional items are needed.
• Anticipate common questions and information. Trustees often ask about your assets, debts, income, expenses, recent financial transactions, and how you came to file for bankruptcy. Review questions commonly asked in 341 meetings and think about your answers in advance.

Tip. Bring copies of all banking, retirement, and investment statements reflecting the account balance on the day you filed. The trustee will want to see it to ensure you followed the requirements for keeping cash in bankruptcy.

When a Continuance Might Be Out of Your Control

Sometimes, even with thorough preparation, the trustee will need more time. A trustee has the right to all information necessary to assess your financial situation correctly, and will often continue the 341 meeting for reasons such as:

• Giving you time to produce additional financials or property-related information, such as photos, appraisals, and receipts.
• Allowing the trustee to inspect or inventory your home, business, property, storage facility, or bank deposit box.
• Providing a creditor additional questioning time (the trustee might set aside an entire hour).
• Conducting a more formal, deposition-like questioning session.

The issue in bankruptcy almost always involves identifying and valuing property. Allowing creditors time to question the debtor about hidden assets and potential fraud concerns gives the trustee key insights without requiring the trustee to do the heavy investigatory lifting. Detailed questioning doesn't happen regularly—only when the trustee or creditor is gathering evidence and assessing the potential of or preparing for the filing of an adversary action (bankruptcy trial).

Tip. One of the benefits of hiring a bankruptcy lawyer is that they use their experience to predict a trustee's questions and take steps to address issues before the 341 meeting. Legal counsel is also invaluable if your case is complicated or involves litigation.

If the 341 Meeting Is Continued

When the trustee continues your meeting, your goal is to quickly meet the trustee's needs so your case continues to proceed smoothly. Here are a few suggestions you might want to employ:

• Make sure you know the reason for the continuation and what the trustee expects from you.
• Gather and forward all required documents as soon as possible, being sure to keep copies for your records.
• Determine whether the trustee is satisfied with the information and if the trustee intends to cancel and conclude the hearing, or if you're required to appear.
• If you aren't represented and aren't sure what's happening in your case, consider retaining bankruptcy counsel.

Once the trustee officially concludes the meeting, you won't need to appear for the hearing again.

Understanding What Happens After Your 341 Meeting of Creditors

Although the 341 meeting proceeds in roughly the same way in both bankruptcy chapters, this is where most similarities end. The requirements after this point depend largely on whether you file for Chapter 7 or Chapter 13.

Next Steps After the Chapter 7 Creditors Meeting

You won't immediately receive your Chapter 7 bankruptcy discharge. You'll need to meet two additional requirements.

• Passing the creditor objection date. Your creditors have 60 days from the date of your initial meeting of creditors to object to your discharge. An objection to a discharge formally claims the debt shouldn't be eliminated because of reasons such as fraud or dishonesty, hidden or fraudulently transferred assets, or failure to provide documents. The bankruptcy court must review the facts and decide the outcome.
• Completing the debtor education requirement. After you file your Chapter 7 case, you'll need to take the second bankruptcy class, a debtor education course. The court will close your matter without issuing a discharge if you don't file the certificate. You'll have to pay another filing fee to reopen the case and file the certificate. The approved list is located on the U.S. Trustee Program website.
• Handling motions and reaffirmation agreements. Not all events occur in every case. You might need to file a motion to ask the court to avoid a lien (remove a judgment lien), to redeem a car loan (and pay its value in one lump sum amount), or approve a reaffirmation agreement on your car. A reaffirmation agreement is a voluntary agreement between you and a creditor to continue paying a debt, usually a car loan or mortgage, because you want to keep the property and are willing to remain personally liable for the debt.
• Handling proof of claims. Although more common in Chapter 13, creditors file proof of claim forms stating the amount owed when assets are available for distribution to Chapter 7 creditors.

When the Court Will Close a Chapter 7 Bankruptcy Case

If no creditors object and you've filed your certificate of debtor education, then you'll receive your discharge after the deadline for filing objections passes. The bankruptcy court typically closes the case a few days later. However, the case might remain open longer if the trustee needs more time to sell property or the bankruptcy court hasn't resolved an issue unrelated to your discharge.

What Happens After the 341 Meeting of Creditors in Chapter 13?

Unlike Chapter 7, after your 341 meeting in Chapter 13, the next significant event is the plan confirmation hearing.

The Chapter 13 Confirmation Hearing

You or your lawyer should plan to appear at a confirmation hearing. At the confirmation hearing, the judge will consider filings, listen to arguments, and decide whether your plan should be "confirmed" or approved.

When assessing your plan, the judge will consider whether it meets all Chapter 13 legal requirements. In addition to determining whether creditors are receiving what they're entitled to under bankruptcy law, the judge will also consider the following:

• Is the plan feasible? The judge will consider whether you have enough discretionary income to meet the proposed plan payments.
• Did you propose the plan in good faith? This factor assesses whether you're sincerely attempting to restructure your debts as opposed to using Chapter 13 to delay foreclosure or for some other purpose.
• Is the plan fair to your creditors? You must pay them at least as much as they'd received had they filed for Chapter 7.

If the trustee or creditor prevails, the judge usually gives the debtor time to modify the plan when modification appears possible. Confirmation hearings rarely take longer than 30 minutes, but could last up to a day in complicated matters.

Learn more about what to expect at the Chapter 13 confirmation hearing.

What You'll Do After the Chapter 13 Confirmation Hearing

If your case is confirmed, you'll continue making the monthly payments you started paying about a month after filing your matter. Depending on the Chapter 13 confirmation hearing's outcome, the bankruptcy judge might adjust the payment amount, or it might remain unchanged. If the judge doesn't confirm the plan and doesn't give you additional time to revise it, the trustee will return your payments, with some exceptions.

• Verify creditor debts. To receive payment, creditors must file a "proof of claim" with the court by a set deadline. The proof of claim states how much the creditor believes you owe and provides evidence of the debt, such as a contract. Typically, the deadline is 90 days after the first 341 meeting date, with an extended deadline for governmental units. You'll review the submissions and object to inaccuracies to ensure creditors receive the amount entitled to by law.
• Debtor education course. You'll receive your discharge after completing your three- to five-year plan and the debtor education course. You might also need to report the status of support payments and other issues on local forms.
• Motions and other issues. You might need to address another problem with the court during the plan period. For instance, if you're unable to continue making the required payments, you might need to file a motion with the court asking for a Chapter 13 plan modification.

Building Your Financial Future: Post-Discharge Steps

Bankruptcy can be a long road, and it's a relief to receive your bankruptcy discharge and get your fresh start. But there's more to do. If you want long-term financial success, you'll need to take proactive steps to manage your finances and rebuild your credit.

Responsibilities After Discharge

However, you'll want to be aware of a few ongoing considerations. If your financial situation changes significantly—you inherit property or win the lottery—shortly after your discharge, speak with a bankruptcy lawyer. You'll likely have a responsibility to report it to the bankruptcy court. Also, you'll want to monitor your credit report for accuracy and ensure discharged debts are reported as such and that no new inaccurate information appears.

Repairing Credit and Building Financial Security

A good place to start is by creating a budget and an emergency fund. You can apply the skills learned in the debtor education course. Additionally, begin improving your credit score, which will initially be impacted negatively by your bankruptcy. Although the bankruptcy notation will remain on your credit report for 7 to 10 years, depending on the chapter, the impact will lessen as you rebuild your credit over time.

Start with a credit card or a small loan, make all payments on time, and keep credit card balances low. You'll likely receive credit offers fairly soon after bankruptcy. Accept the best offer possible, and try to avoid low credit limits (the amount of available credit you have is what drives your credit score to improve—low available limits, even if you aren't carrying a balance, aren't helpful).

You'll want to initially verify that discharged debts are properly reported on your credit report, and continue to monitor it regularly for accuracy. Over time, your credit score and credit offers will improve.

Common Pitfalls to Avoid After Your 341 Meeting

After the trustee concludes the 341 meeting of creditors, you can increase the likelihood of a successful outcome by taking care to avoid these common mistakes.

• Forgetting to take the debtor education course. All individuals filing for Chapter 7 or 13 must complete the debtor education course before receiving a discharge. Because failing to file the certificate will result in the court closing your case without issuing a discharge, the best practice is to complete the requirement as soon as possible after filing.
• Disregarding court and trustee communications. The court and trustee will regularly send information by mail, and possibly email. Be sure to read them. Trustees often send extensive lists of items you must produce in addition to the required 521 documents. The court notices will contain meeting locations, deadlines, and information about papers filed in your case. Avoid delays and unfavorable consequences by reviewing and responding to bankruptcy-related correspondence.
• Failing to budget for Chapter 13 plan payments. It's common to believe that if you file for Chapter 13, the payments won't begin until the court confirms the payment plan. But that's not the case. You must start paying before the confirmation hearing—usually about 30 days after filing—so plan accordingly to avoid a dismissal before the plan can be approved.

Frequently Asked Questions About What Happens After Your 341 Meeting of Creditors

Below you'll find the answers to questions debtors commonly have about the bankruptcy process after attending the creditors meeting.

What are the possible outcomes of the 341 Meeting?

The trustee will do one of two things after the initial date set for the 341 meeting: conclude or continue the meeting. The trustee will continue the meeting to another date until the trustee verifies the petition's disclosures and investigates the debtor's assets. Once completed to the trustee's satisfaction, the meeting will be concluded.

What circumstances warrant a 341 meeting continuance?

The most common reasons the trustee will continue a meeting include a failure to provide proper identification or the 521 documents. A continuance is also standard when the trustee discovers other financial or verification documents are needed, if additional time for questioning is necessary, or the trustee plans to inventory your property.

How long after the 341 meeting must I wait to get the Chapter 7 discharge?

Most people receive the Chapter 7 discharge about 60 to 90 days after the meeting. The court usually closes the case a few days later, although it can take longer if other issues remain open.

Does the trustee or judge decide to confirm the Chapter 13 plan?

The Chapter 13 judge decides whether to approve (confirm) the plan. The trustee will make recommendations, and most judges give weight to them, but ultimately, the judge makes the call. Also, only the judge can modify the Chapter 13 plan.

Do I need a bankruptcy lawyer to help me navigate Chapter 13 after the creditors meeting?

Although you aren't required to be represented by a lawyer, most debtors find the Chapter 13 process too complicated to navigate without professional help. Successfully navigating a lengthy plan requires understanding bankruptcy law and the process, as well as the ability to prepare a confirmable plan and motions, handle hearings and ojections, and more.

Need More Bankruptcy Help?

Did you know Nolo has made the law accessible for over fifty years? We wholeheartedly encourage research and learning, and you can find many more helpful bankruptcy articles on Nolo's bankruptcy homepage. These resources can explain what bankruptcy can do, what you'll want to avoid before filing for bankruptcy, and more. Additionally, information needed to complete the official downloadable bankruptcy forms is on the Department of Justice U.S. Trustee Program website.

However, online articles and resources can't address all bankruptcy issues and aren't written with the facts of your particular case in mind. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.