If you are somebody who has consulted Seattle bankruptcy lawyers and have filed for bankruptcy or are somebody who is a creditor and have received a notice from the bankruptcy court then you may be interested to know what a meeting of creditors is.
Section 341 of the Bankruptcy Code requires that a local bankruptcy Trustee convene and preside over a meeting in which the trustee will ask the debtor questions and creditors have the opportunity to do the same. This meeting of creditors, which is also referred to as a 341 meeting, is required to be held for every bankruptcy case. The debtors are required to attend the meeting (with their bankruptcy attorney, if they have one) and in most cases it is the only meeting or hearing that the debtor must attend associated with their bankruptcy case.
The first meeting of creditors usually occurs in about 30 days after the date that the bankruptcy petition was filed with the Bankruptcy Court. When the bankruptcy petition is filed, the bankruptcy clerk’s office sends out a notice that sets the date for the meeting. No bankruptcy judge is present at the meeting, and debtors are usually scheduled in groups of 10 every hour and wait their turn to be questioned by the bankruptcy trustee.
The meeting of creditors allows the trustees office to review a debtor’s petition and schedules with the debtor face-to-face. The debtor is required to answer questions under penalty of perjury concerning the debtor’s conduct, assets, liabilities, financial condition, and any matter that may affect administration of the bankruptcy estate or the debtor’s right to a discharge. This information allows the trustee to understand the debtor’s circumstances and administer the bankruptcy case. If you have hired a Seattle bankruptcy lawyer, then your attorney will be present with you at the meeting.
Section 341 meetings are typically short in duration and typically only last about 5 minutes. The trustee may continue the meeting if they are not satisfied with the information that the debtor provides or more time is required to examine the debtor. If the debtor fails to appear at the meeting of creditors, the trustee may request that the Bankruptcy Court dismiss the debtors bankruptcy case. It should be noted that is is rare for creditors to show up at the meeting of creditors as there is not much that can be done about a debtor filing for bankruptcy unless there is evidence of suspect fraud or abuse which could
Before attending a meeting of creditors, debtors are required to send the trustee at least seven days prior to the Section 341 meeting all payment advices or other evidence of payments received by the debtor within 60 days before filing, and their most recent tax returns and bank statements.