What to Expect at the 341 Meeting?

You’re paperwork has been submitted.  You have reviewed the final petition, schedules and statements with your attorney.  The next step in your bankruptcy case is the 341 Meeting of Creditors.  I find that this meeting causes more anxiety and stress for clients than any other part of the bankruptcy process.    Let’s set the record straight!  Here are answers to the most frequently asked questions about the meeting of creditors:

1.  Why is it called a “341 Meeting”? Forgive us for the references to the Bankruptcy Code!   Most attorneys refer to the meeting of creditors  as  the “341 meeting.”  That is simply the section of the Bankruptcy Code that provides the legal basis for the meeting.   11 U.S.C 341.

2.  Are there really going to be creditors there? In most cases, creditors do not appear.  The time and expense required to send someone to  the meeting is much greater than the potential recovery!   The most common reasons to have a creditor show up at your meeting are: (a)  you have a business with partners, investors or local creditor; (b) you owe money to an ex-spouse; (c) you owe back taxes to the Federal or State government; or (d) you have pledged an asset as security for a debt you owe.

3.  Is this a hearing before a judge? Most definitely NOT!!  The panel Trustee appointed in your case is responsible for conducting the meeting.  In fact, the judge overseeing your case is PROHIBITED from attending.  11 U.S.C. 341(c). The Trustee’s job is to determine whether there are non-exempt assets which can be sold to pay creditors (Chapter 7); or whether you are contributing your disposable income and satisfying the best interests of creditors (Chapter 13).   The Trustee has other duties, including verification of your identity and social security number.  The questions you can expect from the Trustee are pretty basic and should be easily answered.

4.  Is someone going to come to my house to look at my “stuff”? It is VERY unusual that the Trustee, or a representative of the Trustee will ask to inspect your home.

5.  What do I need to bring with me to the meeting? Check with your attorney for details of what you should bring, but at a minimum you should have your drivers’ license, proof of your social security number, bank statements and pay stubs covering the date of filing.  Each Trustee may have a different set of documents or information they would like to look at.  Having these documents available will greatly decrease potential problems in your case.

While the anticipation of the 341 Meeting of Creditors can cause anxiety for a bankruptcy filer, the actual meeting is usually very smooth!

Take a deep breath!  The 341 Meeting of Creditors will usually pass quickly and without incident, putting you that much closer to being DEBT FREE!!