What Happens during a Bankruptcy Meeting of Creditors?

Posted on in Personal Bankruptcy

Illinois bankruptcyattorneyIt is natural to feel somewhat anxious at the thought of going through a bankruptcy, particularly if you are not sure what to expect. You may have heard about a ‘meeting of creditors’, which sounds intimidating. The fact is that this is a routine matter, and far less dramatic than it sounds. The following outlines what you can realistically expect during this meeting, and the questions your attorney will review with you to ensure you are prepared.

341 Meeting or Meeting of Creditors

Once you have opted to go through the process of bankruptcy as a way of dealing with your financial situation, we will collect the necessary documents and information regarding your possessions and the types of debts that you owe. After your bankruptcy petition is completed, it will be filed with the local court. Prior to having it approved and finalized, you will be required to attend a meeting with your creditors before the local trustee, otherwise known as a 341 meeting. This name comes from the section within the U.S. Bankruptcy Code in which laws requiring the procedure can be found.

A meeting of creditors is held during both either a Chapter 7 or Chapter 13 proceeding, and serves the purpose of establishing the following:

  • You are aware of the potential consequences of filing for bankruptcy, including the impact it could have on your credit rating;
  • Your situation qualifies you to file for bankruptcy under the chapter your attorney has selected;
  • You understand the effects of a discharge on any debts you owe;
  • You understand the impact of affirming any of your outstanding debts.

Your attorney will be present at this meeting, and will discuss with you these questions in advance to ensure you understand them and are clear in your responses.

Additional Questions at a 341 Meeting

While referred to as a meeting of creditors, the majority will likely not attend. Those that do show up may have concerns over what you are planning to do with secured property, such as cars or homes, or if you obtained recent cash advances or credit card charges with the knowledge that you would be filing bankruptcy in the future.

The Department of Justice provides an outline of additional questions that may be asked during your 341 meeting to ensure you have no additional resources that were not included on your bankruptcy petition. Questions you may be asked include:

  • Does any person or business owe you money?
  • Are there any funds due you through an inheritance or a life insurance policy?
  • Are you owed a tax refund?
  • Do you anticipate receiving any additional property or cash due to a divorce or settlement agreement?

Again, we will be by your side throughout this meeting, and will make sure you are prepared well in advance. To find out more about this process or to speak with a passionate Tinley Park bankruptcy attorney regarding your specific situation, call or contact the Law Offices Of Eric G. Zelazny online and request a free consultation today.

 

Sources:

https://www.gpo.gov/fdsys/pkg/USCODE-2011-title11/html/USCODE-2011-title11-chap3-subchapIII-sec341.htm

https://www.justice.gov/sites/default/files/ust/legacy/2012/11/29/Section_341%28a%29_Meeting_Questions.pdf

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