When you’re dealing with a difficult financial situation, the last thing you want to attend is a meeting of creditors. However, everyone who files bankruptcy must attend a 341 hearing. During this time, your attorney will be by your side and help you answer questions about your bankruptcy.
If you’re considering filing bankruptcy or have an upcoming meeting of creditors, contact The Law Offices of Diane Anderson today at 530-626-6441.
What Is a Meeting of Creditors?
A meeting of creditors is often called a “341 hearing” because it is required by section 341 of the U.S. Bankruptcy Code. Bankruptcy involves several different hearings, including a 341 meeting of creditors. During this meeting, you will sit at a table with your bankruptcy trustee and any creditors who choose to attend. You will discuss information you provided in your bankruptcy paperwork and answer any questions from the trustee.
Who Will Attend?
The meeting of creditors is intended to allow creditors to face you prior to court. However, very few creditors attend the hearing unless they suspect fraud or dishonesty is involved in the bankruptcy. Instead, you and your attorney will meet with your bankruptcy trustee in a room outside of the court.
Where Will the Meeting Take Place?
Your meeting of creditors will not take place in court. Instead, you will likely join your bankruptcy trustee and attorney in a meeting room. The meeting room may be at the courthouse or outside of the court altogether. If your trustee has an office, your meeting of creditors may take place at their office. It may also take place at a law office. However, it is most common for the meeting of creditors to take place at a meeting room outside of the courthouse.
Common Questions Asked at a Meeting of Creditors
During the meeting of creditors, your trustee will ask you several questions. The trustee will verify information you provided on your bankruptcy paperwork. Common questions you may be asked include:
- How did you value your home or car?
- Do you anticipate receiving an income tax refund?
- Have you sold or transferred any property within the last year?
- Does anyone else possess any property that belongs to you?
- Do you anticipate receiving any inheritance or life insurance payouts in the future?
- Do you anticipate receiving any settlements in the future?
- Will you receive any property as the result of a divorce within the next year?
- Do you have any legal claim to money from a business?
- Do you have any legal claims against anyone pending?
- Have you recently made any payments to relatives or creditors?
- Does anyone owe you any money?
A skilled attorney can help you prepare for the questions they will ask you at the meeting of creditors. You will likely have to verify all of the information you provided in your bankruptcy paperwork. However, the trustee may also ask you about your current and future finances. You will also be asked about past actions regarding money disposal.
You Should Have Legal Representation
Whether you file Chapter 7 or Chapter 13 personal bankruptcy, you will be expected to attend a meeting of creditors. Although your attorney can attend most hearings for you, you must personally attend the meeting of creditors. It is unlikely that your creditors will appear, but your bankruptcy trustee will still have several questions that you must answer “on the record.”
In order to prepare for your meeting of creditors, simply review your bankruptcy paperwork and make sure you answered everything truthfully and completely. If you see any discrepancies, contact your attorney right away.
Contact a Bankruptcy Attorney Today
If you are considering filing bankruptcy, call The Law Offices of Diane Anderson today at 530-626-6441.