What Is A Meeting of Creditors In A Chapter 7 Bankruptcy?

In every Chapter 7 or Chapter 13 bankruptcy case, the debtor (the person who files a bankruptcy petition) is required to attend a “meeting of creditors” or “341 meeting of creditors” (341 refers to the United States Bankruptcy Code provision that requires all debtors filing a bankruptcy petition to attend).

In Fresno, the 341 meetings are held at the Fresno Bankruptcy Court House located at 2500 Tulare Avenue, Fresno, California – the meeting rooms are located on the ground floor.

As you enter the courthouse, you will be required to go through the metal detectors staffed by court security personnel – they will direct you to the meeting rooms (about 200 feet from the front door on the right hand side (as you enter).

The most important requirement: They are mandatory! If you fail to appear your case could be continued or dismissed.

The meeting of creditors is conducted outside the presence of the judge and usually occurs 4 to 6 weeks after you file your bankruptcy petition. In chapter 7 and chapter 13 cases, the trustee assigned to the case conducts the meeting on behalf of the United States Trustee.
Some of the biggest mistakes debtors make at these meetings is the failure to provide the required documents prior to the hearing. Required documents include: (1) copy of most recently filed tax return; and (2) copies of pay stubs (also known as “pay advices” for the period 6 weeks prior to filing.

My office is responsible for making sure these documents are filed with the trustee.

Your responsibility is to show up.

The meeting are usually low key and respectful. No one is going to be yelling or screaming at you: “Why are you here?” Why didn’t you pay your bills?” 

The purpose of the meetings is to permit the trustee or representative of the United States Trustee’s Office to review your bankruptcy petition in person. You will be required to answer questions under oath about your acts, conduct, property, liabilities, financial condition as it relates to your bankruptcy. This information enables the trustee or representative of the United States Trustee’s Office to understand the debtor’s circumstances.

It is called the “meeting of creditors” because your creditors are notified, and although your creditors may show up and ask questions about your bankruptcy, they rarely attend these meetings.

This comes as a big relief to a lot of my bankruptcy clients since when first hearing about the “meeting of creditors” they think that everyone of their credit card companies (and their terrorist collection agencies representatives) will be attending to get one last opportunity to harass and upset them. If any creditor attends, they are limited by the law as to what questions they may ask and they must be polite, professional and their questions must be relevant to your bankruptcy.

Fortunately, the meeting of creditors only last 10 to 20 minutes, and is usually the only time you are required to attend court in your bankruptcy case. With my clients, we prepare you during the initial consultation and immediately before the hearing for the potential questions that might be raised by the Chapter 7 or Chapter 13 trustee.

Disclaimer

Fresno-Bankruptcy-Lawfirm.com is owned by the Law Offices of Jeffery D. Rowe. We are a debt relief agency. We help people file for bankruptcy relief under the Federal Bankruptcy Code (Title 11 of the United States Code). If you would like to discuss your situation in further detail, please call our Fresno offices at: (559) 228-1500 or our Merced office at: (209) 722-3700 to schedule a consultation.