Whether you file bankruptcy under chapter 7 or chapter 13, the court will schedule a first meeting of creditors. This is sometimes called a “341 meeting” because it is required by section 341 of the Bankruptcy Code. You will be required to attend the First Meeting of Creditors.
When is the First Meeting of Creditors held?
The First Meeting of Creditors is usually held about three to six weeks after you file your bankruptcy petition. The court will send you notice of the date well in advance. You need to attend, so make sure you reschedule any other commitments you have on that date. Failure to attend the meeting will probably result in dismissal of your case.
What should I bring to the First Meeting of Creditors?
The trustee will need to review certain documents, including your tax returns, recent pay stubs, and proof of your home’s value, among others. Trustees often want to receive those documents before the First Meeting of Creditors, so talk to your attorney to obtain a complete list of the documents you need to supply in advance. Your attorney needs most of those documents to prepare the bankruptcy petition, so you might not need to supply any additional financial documents. You do need to bring identification to the First Meeting of Creditors, such as a driver’s license, a state-issued identification card, or a passport, as well as your social security card.
What happens at the First Meeting of Creditors?
The trustee will place you under oath and ask you whether the information you supplied in your bankruptcy petition is complete and correct. The trustee might also ask you about recent payments you made to creditors, property you recently sold or gave away, how you computed your income (if you are self-employed), and other issues that could affect your entitlement to a bankruptcy discharge.
If the trustee has doubts about how the means test applies to you in a chapter 7 bankruptcy, you might be asked about your monthly expenses. In a chapter 13 bankruptcy, the trustee might question you about your monthly expenses to determine whether your chapter 13 plan is realistic. Because the trustee in a chapter 13 bankruptcy must decide whether your proposed plan is likely to succeed, the trustee might also ask about the reliability of your income.
Creditors have the right to attend the meeting and to ask you questions. Most unsecured creditors won’t bother to attend unless they suspect you obtained your debt by fraud. In a chapter 7 bankruptcy, secured creditors might want to question you about their collateral (the location and condition of a car upon which they have a lien, for instance).
What happens after the First Meeting of Creditors?
In most cases, your bankruptcy proceeds to its conclusion after the First Meeting of Creditors. In a chapter 7 bankruptcy, you wait to receive your discharge. In a chapter 13 bankruptcy, you follow the terms of your chapter 13 plan until it ends.
Occasionally, the trustee needs more information and will continue the First Meeting for Creditors until a later date. If that happens, you will need to come back so you can supply the information the trustee is seeking. That usually happens only when you neglect to bring all the documents you need to support the information you provided in your bankruptcy petition.
In unusual cases, creditors or the trustee will learn something at the First Meeting of Creditors that will lead them to challenge the discharge of certain debts or your claim that certain property is exempt. In rare cases, they might even as the Bankruptcy Court to dismiss your case. If any of those events occur in your case, your attorney will advise you how to proceed.
