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What is the Section 341 Meeting of Creditors?

Many debtors are surprised to learn that when they file bankruptcy they typically do not have to go in front of a judge. The one time that debtors typically have to attend “court-like” proceedings is the Section 341 Meeting of Creditors, often also referred to as the “Trustee Meeting”.

Many people get nervous when they hear talk of a “creditor’s meeting” and they picture a bunch of people in suits yelling at them. That is not typically what happens at the 341 meeting. At the Trustee meeting creditors do not typically show up. It is typically just a debtor, their attorney, and the Trustee. The Trustee is appointed by the Department of Justice to oversee bankruptcy cases. The Trustee’s role is to represent the creditors. It is an important distinction to note that while the Trustee represents the creditors, he/she does not work for the creditors.

The Trustee’s job is essentially to review a debtor’s bankruptcy petition and see if there are any assets to distribute to creditors.  Once the Trustee reviews a debtor’s petition, he will typically ask the debtor questions about the petition. For instance, the Trustee will commonly ask debtors how they have valued their property, where they are currently working, etc. This meeting can last from 10 – 15 minutes.

The only things clients are typically responsible for bringing to this meeting are a social security card and drivers license to prove their identity. Sixty days after the Trustee meeting, a debtor will typically receive their discharge which legally erases most unsecured debts.

If you, a family member, or a friend are considering bankruptcy and have questions, contact the attorneys at Fears Nachawati today and they will be happy to help! Call us at 1.866.705.7584, or send an email to fears@fnlawfirm.com.

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