The 341 Bankruptcy Meeting

After a petition for bankruptcy has been filed, the trustee in the case will schedule an appointment where the consumer(s) must appear.  According to part A of section 341 of the United States Bankruptcy Code, Meetings of creditors and equity security holders, “Within a reasonable time after the order for relief in a case under this title, the United States trustee shall convene and preside at a meeting of creditors.”

The consumer(s) will appear in front of the trustee assigned to the case, usually accompanied by his or her bankruptcy attorney.  The consumer typically is not the only person present at this meeting as several different petitioners are all assigned the same date and time.  Once the meeting commences, all consumers and attorneys in the room will stand up and swear an oath to tell the truth.  Afterwards, the trustee will begin calling consumers to come and be questioned.

Once the consumer takes the hot seat, the trustee will ask information about the consumer’s case, the reason for the bankruptcy, whether steps are being taken to prevent another financial crisis and other inquiry-type questions.  If a consumer has filed a previous bankruptcy, the trustee will use this time to question why a second bankruptcy has been filed.

After the trustee finishes querying the consumer, any creditors that have appeared at the meeting will have the opportunity to question the consumer.  In some cases, no creditors will appear.  In other cases, many will show up in order to ask the consumer about his assets.  At this point, any secured assets may be scheduled for repossession if it has not already been done.

This meeting may be very intimidating for even the most resilient consumer.  However, it is just standard procedure and every consumer must take part in a 341 meeting of creditors.