What to expect at a 341 trustee meeting
It’s the night before your 341 meeting, the meeting with the trustee for your chapter 7 bankruptcy. Try as you might, you are tossing and turning and can’t get to sleep. You think about having a snack, but your stomach is tossing and turning even more than you are, as questions race through your mind. Will your bankruptcy case be tossed out for some reason? Will the trustee decide that you are not trustworthy? What if you are asked questions that you can’t answer? It’s incredibly nervewracking.
A lot of people get nervous before this meeting, but as long as you hired an experienced bankruptcy attorney and you provided honest answers to the questions you were asked to prepare the petition, it should be okay, and you will feel much better once it’s finished. Here’s answers to some common questions about this step in the bankruptcy process.
Why is this called a “341 meeting?”
That’s shorthand. Attorneys use a lot of shorthand. It is also called a “trustee meeting” or “meeting of creditors.” The first nickname refers to section 341 of the bankruptcy code, which requires that “the trustee shall convene and preside over a meeting of creditors.” This meeting is an opportunity for your creditors to confirm details about your case, but the same questions will be asked whether
Are my creditors going to show up?
Your creditors have the right to show up, but if you are filing for chapter 7 bankruptcy protection, it’s rare. The main reason a creditor appears is if it looks like you may have valuable assets you can use to pay off some of your debts, and they want to get a share. In most cases filed through my office, the debtor doesn’t have anything left, after the legal exemptions are considered. If it doesn’t look like that is going to happen, I discuss it with my clients before the case is ever filed.
Do I have to appear in person?
Since the pandemic shutdowns, these meetings have all been held over the phone. The trustee sends the instructions to the attorney.
How does the meeting play out?
Trustees schedule several debtors for the same time slot. Once you call in, you will be able to hear the kinds of questions that are being asked while you wait for your name to be called. I attend every meeting with my clients, and I walk them through the process ahead of time. Once the trustee finishes asking you questions, you may leave the call.
What questions will the trustee ask me?
The trustee wants to make sure that the filed papers are truthful and accurate. Any question can be asked to that end, including:
confirming that you are the person you say you are,
confirming you read the petition,
that nothing is missing from the information, and
that everything in the petition is correct.
How long does the meeting take?
You will probably have to wait for others to be heard first, but once your part begins it usually doesn’t last more than 15 minutes.
If you have more questionsabout filing for bankruptcy, call Selby Legal for a free consultation.