Chapter 7 Bankruptcy 341 Meeting

If you are going to file aChapter 7 Bankruptcy, you may have heard of something called a 341 meeting. A section 341 meeting can also sometimes be referred to as a meeting of creditors or creditors meeting. Essentially this is a meeting where if you are filing for bankruptcy under this chapter, the creditors that you owe money to or want to discharge through the bankruptcy, can come and ask you questions.

In attendance is usually your bankruptcy attorney, you and a court appointed trustee. The trustee essentially is the person who oversees the Chapter 7 Bankruptcy to make sure everything is adhered to according to the bankruptcy law.

Usually most creditors do not send a representative to the section 341 meeting of creditors. But this does not mean that they cannot show up to ask you questions. Your bankruptcy lawyer will usually have prepared you thoroughly for what to expect at the 341 meeting.

The type of bankruptcy questions a creditor who attends the 341 meeting may ask you could relate to some of the information you may have filed out on the original application you made to the creditor when applying for credit. The bankruptcy questions asked by the creditor could be something to the tune of why there is a discrepancy between the original application and the information on your bankruptcy petition.

One of the concerns a trustee may have at the 341 meeting of creditors is that prior to filing bankruptcy, the debtor may have paid a large sum of money to one creditor and not that much to another. Bankruptcy law does not like favoritism of one creditor over another and the trustee may inquire why this was done or require the favored creditor to return the money to be distributed more fairly. The bankruptcy attorney will usually ask the debtor what sort of payments they have been making in the few months prior to filing bankruptcy.

Many times bankruptcy attorneys have had to deal with nervous clients that fear a 341 meeting of creditors may not go well and there is something that will come up in the bankruptcy law that will throw them off. A bankruptcy lawyer will provide the client with a wealth of bankruptcy information first and plays a critical role in assuring the client the 341 meeting of creditors will proceed without any problems and the clients filing for bankruptcy will go smoothly.

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