What Happens at a Bankruptcy Meeting of Creditors?

A few weeks after your bankruptcy is filed, you will attend your first bankruptcy meeting of creditors. You may also hear this meeting referred to as a “341 hearing.” Officially, it may be called a 341(a) Meeting of Creditors.

Regardless of what it’s called, for many who are still early in the bankruptcy process, it’s a nerve-wracking prospect. It is an official proceeding, but don’t think of it like a court date because there’s no judge.

The 341 hearing is conducted by a federal court trustee who will ask you questions regarding your debts, assets, claims, and property. Just remember that this meeting is designed to help you get a fresh start. It’s not meant to embarrass or trick you.

The key is knowing what to expect, so let’s help get you prepared for yours. This is what happens at a 341 meeting of creditors.

What is a 341 meeting of creditors?

The 341 meeting of creditors is a required part of every bankruptcy case. It gets its name from Section 341 of the bankruptcy code. At this meeting, you’ll meet with a bankruptcy trustee (not a judge) who will ask you questions under oath about your finances, debts, and the information in your bankruptcy paperwork.

The trustee’s job is to make sure all the information in your bankruptcy papers is accurate and complete. They want to verify that you qualify for bankruptcy and that you’ve been honest about your financial situation. Your creditors have the right to attend this meeting and ask you questions, too, but most of the time they won’t show up.

The meeting usually takes place about 20 to 40 days after you file your bankruptcy case. It’s held in a meeting room (not a courtroom), and it’s much less formal than you might expect.

What to Expect at Your First Meeting of Creditors

The trustee will ask you questions about your financial situation for about ten to fifteen minutes, so be prepared to answer. There are no embarrassing or trick questions. It’s a necessary part of the process designed to get you back to financial freedom as soon as possible. If you’re working with OlsenDaines, your attorney will be present at the hearing to represent you. Your attorney can’t answer questions for you. They’re present to help guide you and ensure all matters are resolved.

Check out our video for more of what you can expect at a meeting of creditors:

How to Prepare for Your Meeting

Knowing what to expect and how to prepare for a 341 meeting will help it go a lot smoother, and that means a lot less stress and anxiety for you. Depending on whether you’re filing for Chapter 7 bankruptcy, Chapter 13 bankruptcy, or whatever your unique circumstances are, your attorney will discuss any specific information you need to know for your case.

Here are some general tips we would like to suggest to all of our clients:

You’ll want to arrive at the hearing 30 minutes early, so you can listen to hearings prior to yours. This is very important as the questions are the same, and you can think about how you will answer the same questions.
At the beginning of the interview, you’ll be sworn in under oath to testify to the truth. Honor that oath — there’s nothing to gain by not telling the full truth.
Most of the questions asked can be answered yes or no. If that’s all the question calls for, you don’t have to add extra detail.
Please make sure you let the trustee know if you don’t understand the question or if it needs to be repeated.

What questions does the trustee ask at the 341 meeting?

It’s not a mystery what they’ll ask about during the meeting – they want detailed information about your finances so they can work out a resolution that’s in the best interests of every party involved.

With that in mind, be prepared to answer questions like these:

Do you have any right or claims to inheritance proceeds within the next six months?
Do you have any claims against third parties where you could sue someone, like a personal injury claim resulting from a motor vehicle accident?
Have you paid back any family members more than $600.00 in the year before filing your bankruptcy?
Have you transferred or gifted any property to friends or relatives in the past four years?
You also may be asked what you believe your home or vehicles are worth and how you determine their value.

What happens at the meeting of creditors for Chapter 7 vs Chapter 13?

Chapter 7 meetings are usually shorter and simpler. The trustee is mainly looking for assets they can sell to pay your creditors. They will ask you about:

Your income and expenses
Any property you own
Recent sales or transfers of property
Your bankruptcy paperwork and whether it’s accurate
Any expected tax refunds or lawsuits where you might receive money

Chapter 13 meetings tend to be a bit longer because you’re proposing a repayment plan. The trustee wants to make sure your repayment plan is realistic and fair to your creditors. They will ask about:

Your income and whether it’s steady
Your proposed payment plan and whether you can afford it
Your expenses and whether they’re reasonable
Any changes in your financial situation since filing
How you calculated your creditor payments

What does this proceeding actually look like?

Sometimes, being able to visualize the proceeding makes all the difference. Here’s a video of an actual 341(a) meeting of creditors taking place in person:

What happens if I miss my 341 meeting?

If you don’t show up, the trustee will likely ask the court to dismiss your case, your automatic stay protection will end (meaning creditors can start collecting again), and you may have to wait before you can file for bankruptcy again.

The meeting is mandatory, and you must attend. Missing your 341 meeting is a serious problem that can put your entire bankruptcy case at risk.

If you absolutely cannot make your scheduled meeting due to an emergency, contact your attorney immediately. Sometimes the trustee will agree to reschedule, but you need a solid reason not to attend.

Are These Hearings Conducted via Zoom?

During the COVID-19 era, courts began holding 341(a) meetings via Zoom. Contact your bankruptcy attorney for more information about that, or if you’re not currently working with a bankruptcy attorney, feel free to contact us.

Here are some tips for getting ready for a 341(a) meeting via Zoom:

Before joining the Zoom session, verify that your Zoom name is the same as it appears on your bankruptcy petition. If you have used Zoom in the past, your prior name may appear. If their Zoom name is “Josh’s Mom,” the trustee will not know that it’s Cecilia Smith.
You should download the Zoom app prior to your hearings. The connection is much better if you have the app downloaded to your device rather than trying to access Zoom through your web browser. In some instances, the Trustee will adjourn the meeting to another date if the quality of the call is not good enough.
Your attorney will inform you of anything you need to submit to the trustee beforehand like copies of photo identification and proof of social security number. Personally identifiable information cannot be shared during the meeting as it cannot be verified on camera.
During the meeting, you must have a readily available copy of filed schedules and your statement of financial affairs, along with any other documents requested by and provided to the trustee. You will also need to have your identification documentation with you.
During the meeting, you are not allowed to communicate with any person on the subject of your testimony, by electronic means or otherwise.
You should avoid disclosing personally identifiable information during the 341 meeting. If you need to share a document on camera during the meeting, make sure it does not include any personally identifiable information.

Additional Info

Here are some additional documents provided by the U.S. Department of Justice:

After the 341 meeting, what happens?

The hardest part will be behind you! Here’s what comes next once your 341 meeting is over:

For Chapter 7 cases:

You must complete a financial management course
Creditors have 60 days after the meeting to object to your discharge
You’ll receive your discharge about 60 to 90 days after the meeting (if no one objects and everything is in order)
Most of your debts will be wiped out, and you can start fresh

For Chapter 13 cases:

The trustee will review your repayment plan
You must complete a financial management course
You may need to attend a confirmation hearing where the judge approves your plan
Once confirmed, you’ll start making monthly payments to the trustee
You’ll receive your discharge after you finish all your planned payments.

Have Questions About Your 341(a) First Meetings of Creditors?

The 341(a) meeting of creditors takes only about ten minutes, but it is an important part of the bankruptcy process, and you will receive a fresh start from your debts. For most people, the 341 meeting goes smoothly, and they’re well on their way to financial freedom. The key is staying in touch with your attorney and following through on any remaining requirements.

If you have any questions or concerns regarding the 341(a) meeting of creditors or if you have any other questions on your case, give the bankruptcy experts at OlsenDaines a call. We are here to help you get a fresh start.

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