Lesson 20: Meeting of Creditors (341 Meeting)

The Meeting of Creditors, commonly known as the 341 Meeting, is a crucial step in the bankruptcy process. Named after Section 341 of the Bankruptcy Code, it is a mandatory meeting between the debtor, the trustee, and any creditors who wish to attend.

Purpose of the 341 Meeting

The primary purpose of the 341 Meeting is to allow the trustee and creditors to question the debtor under oath about their financial affairs and the information included in the bankruptcy schedules and statements.

Key Objectives:

  • Verify the accuracy of the debtor's financial disclosures
  • Identify any assets that can be liquidated to repay creditors
  • Evaluate any potential fraud or abuse
Note: Attendance for creditors is optional, but debtors must attend.

Procedure

The 341 Meeting is typically held within 21 to 40 days after the filing of the bankruptcy petition. It is usually conducted in a meeting room and not in a courtroom. The meeting's structure can be summarized with the following diagram:

classDiagram Trustee --|> Debtor : Questions Trustee --|> Creditors : Questions Debtor : Provides Financial Information Creditors : Ask Questions

Common Questions Asked

During the meeting, the trustee and creditors may ask questions such as:

  • Can you confirm the accuracy of the information in your bankruptcy filings?
  • Do you have any other sources of income?
  • Have you transferred any assets recently?

Outcome of the Meeting

After the 341 Meeting, the trustee may take further actions such as:

  • Recommending the case for discharge
  • Requesting additional information or documentation
  • Objecting to the discharge of specific debts
sequenceDiagram participant Debtor participant Trustee participant Creditor Debtor->>Trustee: Submits Financial Information Trustee->>Debtor: Questions on Finances Creditor->>Debtor: Additional Questions Trustee-->>Debtor: Request for Documentation Trustee-->>Creditor: Response to Questions
Warning: Failure to attend the 341 Meeting can result in the dismissal of your bankruptcy case.

Resources

For more information on the bankruptcy process, refer to the following resources:

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