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After a debtor files a Chapter 7 bankruptcy petition, s/he will be notified of a trustee assigned to the case. The attorney will meet with the debtor to explain the 341 Hearing process. The 341 Hearing is a meeting of creditors. Though, there are not usually many creditors who appear in Chapter 7 bankruptcy cases.
The attorney usually attends the 341 Hearing with the debtor. Sometimes the attorney may send a special appearance attorney in his/her place if s/he cannot go in person. This usually occurs when an attorney accepts a case from a debtor that is a far distance away from his/her office such as a law firm in Southern California handling a case in Northern California.
When an attorney in a bankruptcy case cannot attend in person, the attorney in the case must provide the outside contract attorney who represents the debtor just at the hearing with all the information to represent the debtor. This means the contract attorney must have background information on the debtor such as the petition to be able to answer questions from the debtor or trustee. The attorney needs to make sure the outside attorney holds the debtor information in confidence.
When the attorney knows that s/he will have to use an outside attorney, the attorney needs to get the debtor’s consent to employing the outside contract attorney in writing that names the outside attorney or lists possible outside attorneys. The attorney needs to let the debtor know the compensation of the outside attorney.
When the attorney in a bankruptcy case does not know ahead of time that s/he will engage an outside attorney to attend the 341 Hearing, such as when s/he is suddenly sick, the attorney may use the outside attorney but the attorney needs to tell the debtor the name, address, telephone of the outside attorney; get prior written consent for the use of an outside attorney whenever possible; disclose the compensation of the outside attorney; and try to get a continuance of the hearing, in order to make arrangements to go him/herself in the future, unless it is in the debtor’s best interests to proceed.
Rinne Legal, with staff fluent in Russian, helps people with bankruptcies, estate planning (living trusts), and loan modifications in Contra Costa County, Sacramento County and Solano County. Rinne Legal has offices in Walnut Creek, Fairfield, Sacramento, and Elk Grove. Contact Rinne Legal for a free consultation. These blog posts are for informational purposes only and not intended nor should be construed as legal advice. These blog posts may be considered attorney advertising in some states. Prior results described on blog posts do not guarantee similar outcomes in future cases. There is no intent to create an attorney-client privilege or relationship with anyone accessing information on this blog. Authors posting on this blog are not obligated to reply to any emails seeking legal advice. The information contained on this blog is not intended to be a solicitation.
From the author: Rinne Legal practices bankruptcies, estate planning, loan modifications