If you filed for bankruptcy then you received a notice of a 341 Meeting of Creditors. What is it?
Generally, the 341 Meeting of Creditors is a required meeting between the debtor and the Trustee to “review” the assets in the Bankruptcy Petition. The good news is that Judge won’t be present at the meeting so there won’t be any orders made on your Bankruptcy. The bad news is that the meeting is recorded under penalty of perjury so your answers can be used against you in Court.
In theory, the 341 Meeting gives Creditors a chance to come and ask you questions regarding your assets and debts. For example, a Creditor may come and ask for details regarding your real property or question a transfer of assets.
In practice, these meetings last about 10 minutes and go forward without a hitch. The meetings are used as a forum to point out mistakes in the Petition to be corrected. In fact, Creditors rarely show up in consumer 341 Bankruptcy meeting. Those that do usually have very specific questions and the Trustee will not tolerate high tension cross examinations. The IRS is known to come and request a deadline to file missing taxes. The US Trustee Office may send somebody to clarify parts of your Petition that do not make sense, such as extreme income swings or incredible debt.
Note, without a proper conclusion of the 341 Meeting, your bankruptcy will not be approved so it must go forward.
How Do I Prepare?
No matter how simple the 341 Meeting sounds, there is some preparation necessary.
First, bring a current and valid picture ID such as driver’s license or passport to confirm your identity. I see several 341 Meetings not proceed because the debtor forgot to bring a driver’s license or come with one that has expired. The Trustee will not proceed without id.
Second, bring a document with your social security number. The best one is your social security card. In a pinch, a Trustee has been known to accept a paycheck stub or signed tax return with your social security number on it. However, without it, your 341 Meeting will not be finished and you may need to come back.
Third, read over the Petition to make sure you are familiar with its contents. If there have been any material changes or incorrect information, let your attorney know before the meeting.
If you are a Chapter 13 debtor, then you may have to bring in your plan payment. The Trustee usually wants their money in a money order, certified check, or cashier’s check.
Finally, double check the time and location. Give yourself time to find parking. The meetings go fast and even being half an hour late may cause your meeting to be continued or dismissed.
What Happens at the Meeting?
At the meeting, you will wait to get called by the Trustee. When called, you go up to the table with your attorney. The Trustee will confirm your identity documents on the record. You will then be sworn under oath to tell the truth. You will be asked to state your name, social security number, and current address.
After that, the meeting will progress a little differently for everybody. The Trustee may ask about some specific items in your bankruptcy petition, such as verifying your job. If unemployed, they may ask if you have found a job. They may ask what you plan to do with real property or cars. If you want to keep the house or cars, then they will ask if you are current on payments and insurance. If you have a business then there may be some questions regarding the income.
There are some basic questions that always pop up. The Trustee will want to know if you ever filed bankruptcy before, and if so, when. They will want to know if you reviewed your bankruptcy petition before filing and if everything is true and accurate to the best of your knowledge. They will ask if there are any omissions or mistakes you wish to correct now. They will ask if you personally signed the papers.
If you are a Chapter 13 Debtor, the Trustee may confirm your payment plan amounts and the dates when you pay them.
Next, the Trustee will allow any Creditors to ask questions. As discussed, the IRS may show up to ask when you will file your missing taxes and the US Trustee may have detailed questions on items that are missing or wrong on the Petition. If any Creditors are present, then they are usually given 5 minutes to ask questions. The questions are usually fairly simple. For example, I have seen Creditors ask if you plan on keeping the washer/dryer or the elliptical machine you purchased on a monthly payment plan. However, if somebody does show up with the intent to trap you then your attorney should protect you.
Afterward, if there weren’t any problems, then your meeting will be concluded. If there were problems, such as missing documents (or taxes) then the meeting will be continued to another date. In a Chapter 13, the Trustee will announce if they plan to recommend confirmation of your plan or, if not, then what they will need to give the recommendation.
After the meeting, make sure you take the post-petition class to conclude your bankruptcy.
Still Afraid?
Check with your attorney prior to the meeting. Ask any questions you have. If there were problems with your petition, chances are that your attorney already knows about them. Also ask if they will be the one attending with you because it is common for an attorney to send a coverage attorney to the meeting. If so, try to get that person’s name or speak to them before hand. In the very worst case scenario, ask the Trustee to continue the meeting if the questions get too hard so that you can consult with your attorney.
Learn more about the Procedures in a Bankruptcy Case.
Eddy Hsu is an attorney experienced in the areas of Bankruptcy and Family Law. He is admitted to practice in California and the Northern District of California Bankruptcy Court. The above article is informational only and not legal advice for your specific situation. Always consult directly with an attorney to obtain legal advice.
From the author: Law Office of Eddy Hsu
