What is a Meeting of Creditors?
When you file for consumer bankruptcy in Oak Park, Illinois or anywhere else in the country, you will probably hear the phrase “meeting of creditors” used to describe one of the necessary steps in your Chapter 7 bankruptcy filing. In fact, whether an individual or a business files for Chapter 7 bankruptcy, the “meeting of creditors” will take place. What does this term mean, and what is involved in a meeting of creditors?
Defining the Meeting of Creditors Under the U.S. Bankruptcy Code
Under the U.S. Bankruptcy Code, the meeting of creditors falls under § 341, and thus it is often referred to as the “341 meeting of creditors” or the “341 hearing.” The statute specifically states that, “within a reasonable time after the order for relief in a case . . . the United States trustee shall convene and preside at a meeting of creditors.” In other words, once a consumer has filed for Chapter 7 bankruptcy and has submitted all required documentation (such as financial schedules and information about assets and exemptions), the bankruptcy trustee will convene a meeting of creditors. Chapter 13 bankruptcy cases also involve a meeting of creditors.
The meeting is in some ways what it sounds like - a meeting in which you, the bankruptcy trustee, and your creditors convene in one place. The court does not appear at the meeting of creditors, and the statute specifically prohibits the court from presiding at or attending the meeting of creditors.
What You Should Expect at the Meeting of Creditors
What happens at the 341 meeting of creditors? In general, the point of the meeting is that your creditors are able to ask you questions, under oath, about the materials you have provided in your bankruptcy petition. It is basically a way to ensure that all of your financial information and the information you have provided about your assets is complete and is truthful.
You should have your bankruptcy lawyer with you at the 341 meeting of creditors. While a lawyer is not required by the statute, as you can imagine, it is extremely helpful to have your bankruptcy attorney with you when you are responding to questions from creditors.
Although all creditors are invited to the meeting, it is unlikely that they will all appear. The meeting is not likely to last very long—probably only about 10 minutes. You will know when and where your meeting will be held because the court will send you a notice that states the time, date, and place of the 341 meeting of creditors. This notice will also include information such as your bankruptcy case number and the bankruptcy trustee’s information. The trustee will be the person who examines you under oath at the meeting of creditors.
How to Prepare for the Meeting of Creditors in Your Bankruptcy Case
What do you need to do to prepare for the meeting of creditors? Your bankruptcy attorney can help you to prepare. In general, however, you will need to be prepared to answer questions about the documents you have submitted, such as how you valued certain property and whether there is any other property you own that was not listed in the documents. In addition, you will need to bring a number of different documents with you to the 341 hearing, such as:
- Photo identification;
- Documents you submitted with your bankruptcy petition; and
- Evidence of income and other assets.
The bankruptcy trustee can require that you bring additional materials with you.
Contact an Oak Park Bankruptcy Lawyer
If you have questions about your bankruptcy petition and the meeting of creditors, an Oak Park bankruptcy lawyer can help. Contact the Emerson Law Firm to speak with a consumer advocate today.
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