What is a 341 meeting of the creditors?

An Arizona bankruptcy lawyer should give you a general “timeline of events” that will occur after your bankruptcy filing.  The most important “post-filing” event is the 341 meeting, or what is commonly referred to as a “meeting of the creditors”.  Why the reference to the number “341”?  Because it is under section 341 of the United States Bankruptcy Code that sets forth this requirement.

After you file bankruptcy, the court randomly assigns a bankruptcy trustee to your case.  The trustee is not a judge.  The trustee may not even be a lawyer.  The trustee is the “quarterback” of your case.  He or she may collect any non-exempt assets you have, liquidate them, and use the cash to pay your creditors in accordance with the bankruptcy code and procedural rules.

Once a trustee is assigned to your case, you are required to appear at the 341 meeting approximately 30 – 40 days after your bankruptcy filing date.  A few days after you file, the trustee will mail you a letter reminding you of the date and time of the 341 meeting and request that you send certain documents to the trustee prior to such meeting (i.e., tax returns, bank statements, payoff statements, pay stubs, support orders).   Your attorney will be with you at the 341 hearing.

The 341 meeting usually does not last more than 5 minutes.  It is in a conference room (not a courtroom) at the federal courthouse downtown, and approximately 5 other debtors will be present for their own 341 meeting.  The trustee will ask to see your social security card and picture ID to confirm your identity.  The trustee will swear you under oath and ask you a series of basic questions, including how long you have lived in Arizona, whether you reviewed and signed your bankruptcy papers and if everything in your bankruptcy papers is true and accurate.  The trustee may also ask you a couple of questions regarding the contents of your bankruptcy papers.  Creditors are allowed to show up to the 341 meeting and ask their own questions.  Most of the time, creditors never show up to the 341 meeting.

Many debtors are anxious and nervous prior to their 341 meeting, even after I have assured them that they have no reason to be.  Once the meeting has concluded, almost all debtors realize that it was not a scary or intimidating experience.  So long as you have a competent Arizona bankruptcy lawyer prepare your bankruptcy papers and properly advise you prior to filing, and so long as you have provided all of the requested documents to the trustee in a timely fashion, the 341 meeting will be a painless and an easy experience.

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