The slim envelope arrived in your mailbox days after you filed your Chapter 7 bankruptcy petition. Your attorney had mentioned that you had to go to Court to finalize your bankruptcy, but the thought made your stomach queasy and you tried to forget. Now there it is, in your hands, the date and time when you are required to attend your Section 341 Meeting of Creditors!
First you had to spill your financial guts on paper. Now you are required to meet with a pack of money-hungry bankers that just found out they won’t receive any more cash from your empty pocketbook. First thought, call and cancel. “Not a chance,” your attorney states. However, before you pack up the car and make a run for the border, take a deep breath and read on.
The term “Meeting of Creditors” is a misnomer. Creditors rarely, if at all, appear at the Section 341 Meeting. And if one does attend, usually the reason for the creditor’s appearance is benign. For example, the creditor may simply want your signature on a reaffirmation agreement. On the other hand, if you are surrendering an asset, such as an automobile, the creditor may inquire about the location and condition of the vehicle.
“If creditors are not an issue, then why do I even have to go to this thing?” you may find yourself saying. Well, there is someone that needs to talk to you, and that person is the Chapter 7 bankruptcy trustee assigned to your case.
Your testimony to the trustee will be under oath and will be recorded. He or she will verify your identity (social security number and picture identification), will confirm that you read the Bankruptcy Information Sheet, and will ask for your verbal confirmation that the information in your petition, statement of financial affairs, and schedules filed with the Court is accurate and complete.
The questioning may end here, or the trustee may delve further into your financial details, asking for clarification or additional documentation to be provided within a specified period of time. In a Chapter 7 bankruptcy, the trustee also has a duty to liquidate any nonexempt assets of value. During the Section 341 Meeting, the trustee may request the turnover of these items.
Okay, now you know what to expect. Take a deep breath. Do you feel a little better? If you still can’t get rid of that lump at the back of your throat or the butterflies in your stomach, there are a few things that you can (and should!) do to prepare and ensure that your Section 341 Meeting of Creditors will run smoothly.
1. Take a good look at the notice of the meeting provided by the Court. It has a lot of valuable information. What’s the date and time of your meeting? Write it in big letters on your calendar. Make arrangements with your employer to take off during that time. Also, call your attorney and verify that he or she received the notice and has it on the calendar.
2. Take another good look at the notice. Where will the meeting be held? Do you know how to get there? Do you know where to park? Make sure you find out and plan to arrive early. There are lots of obstacles that can slow you down – road construction and detours, lack of available parking spaces, weather, even nerves. Your best bet is to arrive with time to spare. If you arrive late, you risk the chance that your case will be dismissed (or at best, the meeting rescheduled).
3. Take one more look at the notice. Who is the trustee assigned to the case? Is the name of the trustee or his or her law firm familiar? If they represented you (or represented another party’s interest against you), there likely is a conflict of interest, and the trustee will need to decline the case. If you suspect a conflict of interest, contact your attorney. If the case is assigned to a different trustee, your 341 meeting will likely be rescheduled to a different date or time.
4. Verify that all required documents have been filed with the Court. If you receive a notice or order from the Court and suspect that a required document was not filed, get on the phone to your attorney.
5. Make sure you have valid picture identification, such as a state-issued identification card or driver’s license.
6. Make sure you have a valid notice of social security number. If your social security card is missing in action, the trustee may also accept a current W-2 form or health insurance card.
7. Read the Bankruptcy Information Sheet. Your attorney should have previously supplied you with this short document. If not, ask him or her to provide you with a copy.
8. Review you bankruptcy documents once more. Are they accurate and complete? If you notice any changes that need to be made, discuss them with your attorney and make a note to discuss these issues with the trustee at the 341 meeting.
9. Take a small notebook to the meeting. You can use this to jot down any requests that the trustee (or your creditors) make, so that you can remember what you need to do after you leave the meeting.
10. Relax! If you get too nervous and need a couple moments to compose yourself during the questioning process, let the trustee know. As long as you are completely honest and truthful, you really have no reason to worry.
Dawn Hall is a freelance writer who worked as an assistant to a Chapter 7 bankruptcy trustee. She is currently developing a free online Chapter 7 bankruptcy resource guide, including a detailed article about the Chapter 7 bankruptcy process.
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