BANKRUPTCY: 341 MEETING OF CREDITORS

What is a §341 Meeting of Creditors

Every person who files for relief under the U.S. Bankruptcy Code is required to attend a §341 Meeting of Creditors.  This meeting can sound ominous.  Many of my clients have assumed they would walk into a room full of actual creditors!  People get worked up about facing those intimidating creditors demanding money all at one time.  This can be very stressful for people who have been struggling with debts for a long time.  The harassing phone calls can lead to many sleepless nights. 

The good news is that in most cases no creditors show up!  In most instances, this meeting is simply a 5 to 10-minute hearing where a Trustee questions the bankruptcy filer about their assets, income, liabilities and expenses.  The questions the Trustee asks are usually to confirm the information the filer included in their filing paperwork. 

Another common misconception about the Meeting of Creditors is that there is a Judge conducting the meeting.  This is FALSE.  The meeting is conducted by the Trustee assigned to the individual consumer’s case.  The Trustee is a third-party individual who is appointed by the United States Trustee to administer bankruptcy cases in a particular jurisdiction. 

In most cases, the Trustee is the closest thing to an opponent the bankruptcy filer will have in their case.  This is because most creditors are not cost incentivized to participate.  The Trustee is incentivized to try and secure assets from the bankruptcy filer, so it is important to make sure your paperwork is accurate before you file.  Protect your assets before you file your case by consulting with a qualified attorney.  This will make your Meeting of Creditors be quick and painless. 

Call us at 253-471-1200 to schedule a FREE one-hour bankruptcy consultation at any of our offices in Tacoma, Seattle, & Kent.