If you are in bankruptcy or considering filing, you may have heard of something called the 341 meeting. This meeting is a critical part of the bankruptcy process, where important decisions are made about how you will repay your creditors. It is not as scary as it sounds—let us break it down so you will know exactly what to expect when it is your turn.
What Is 341 Meeting?
A 341 meeting, also sometimes referred to as a “meeting of creditors,” is something every bankruptcy case has to have as part of the process. Here is where the court trustee meets with you, the debtor, to discuss the facts involved and determine how to apply these facts to your case. By default, it is named because this meeting is mandated by Section 341 of the Bankruptcy Code.
The meeting occurs between 21 and 40 days from the date you file bankruptcy. After filing, the clerk of the court will advise you of the date, time, and location of the meeting.
You will have to appear in person for the 341 meeting, but again, it is not some courtroom. In general, it is held at the trustee’s office. While there is not a judge, you will still be sworn in during the hearing. That means you must tell all the truth about your bankruptcy matters.
Who Goes to the 341 Meeting?
So who is going to show up?
- You (debtor): You must appear, and if you fail to appear, your case may be dismissed.
- Trustee: This person oversees your case and ensures everything is in order.
- Creditors (optional): These are the people you owe money to. They do not always appear, but they are invited to do so if they want to.
- Attorneys (optional): You or the creditors can have an attorney present if you wish, but it is not required.
If you and your spouse are filing for bankruptcy together, both of you must attend the meeting.
What Takes Place at the 341 Meeting?
Here is how the meeting goes:
- Verify Information: The trustee will go over your bankruptcy paperwork with you to ensure everything is correct and that you have remembered everything, such as debts or assets.
- Creditors May Ask Questions: If creditors choose to attend, they may ask about your assets, such as a car or house, or if you intend to continue paying on certain debts. For example, they might ask if you want to reaffirm a debt (this means agreeing to continue paying a loan). They may also ask about your recent credit card charges to make sure you did not rack up debt just before filing for bankruptcy.
- Answering Questions: Your role in this meeting is to inform the trustee about anything that needs updates or changes in your case. You also get the opportunity to ask questions you might have about your bankruptcy. If a creditor is claiming you owe a debt that is, in fact, not true, you will get a chance to file a complaint about it now during this meeting.
What to Take to the 341 Meeting
Make sure you have the following documents with you when appearing at the meeting:
- Photo ID: It will ascertain who you are.
- Social Security card: Another method of proving your identity.
- Bankruptcy documents: These are the ones you previously filed.
- Income proof: Either pay stubs that are usually recent or other documentation showing the money you make.
These are necessary for the meeting to be moved, or it could even be canceled.
Variation Between Chapter 7 and Chapter 13
If you filed for Chapter 7 bankruptcy, the trustee will focus on which of your assets, things you own, will need to be sold to pay your creditors.
In a Chapter 13 bankruptcy, you propose a repayment plan. The trustee reviews your proposed plan for reasonableness and feasibility. The trustee or a creditor can object to a plan if they don’t think it’s good enough. You may have to go to court or modify your plan at this time.
How long does it take for the 341 meeting?
Most 341 meetings take less than 10 minutes. It might seem quick, but this meeting is significant. The great news is you will generally only attend one meeting, and that is it!
What Occurs Following the 341 Meeting?
After the meeting, you will need to complete a debtor education course. You must take this course before your bankruptcy is processed and your debts are discharged (canceled).
Creditors also get 60 days after the meeting to object to your bankruptcy case. If they do not object, your case will be on its way as planned.
Conclusion
While the 341 meeting might seem intimidating, knowing what to expect can make the process much less stressful. Just remember to be honest about your debts, show up on time, and bring all the required documents. And feel free to ask questions if you are unsure about anything. This meeting is your chance to make sure everything is for your bankruptcy case.