First Meeting of Creditors
The first meeting of creditors is commonly called the 341 Meeting and is the first meeting between the debtors and the creditors. (See Creditors' Meeting)
First Meeting of Creditors
The meeting is generally held 30 days after the Bankruptcy Petition is filed. The Bankruptcy Trustee presides over the meeting and may ask the debtor questions about their liabilities and assets under oath. Creditors may also attend the meeting and ask questions, but if a debtor is filing Chapter 7 Bankruptcy the creditors are less likely to attend this meeting or question the debtor. Creditors have a limited time to ask debtors questions.
The meeting is considered a "fact finding" meeting and does not decide any central issue of the bankruptcy case. An adversary proceeding or a motion may be filed if the trustee or creditor is concerned about certain facts of the bankruptcy case. Creditors may file a claim and object to the discharge of assets without attending the first meeting of the creditors. The meeting is tape recorded.
After the Meeting
After the first meeting of the creditors if the debtor has filed Chapter 7 Bankruptcy the trustee will take possession of the debtor's assets and begin selling them in an effort to repay creditors. Creditors will be paid in the priority order outlined in the United States bankruptcy code. The debtor has limited responsibilities for a Chapter 7 Bankruptcy after the First Meeting of Creditors other than cooperating with the bankruptcy trustee and ensuring the trustee has all the necessary information to complete the Liquidation of assets.
More Help on First Meeting of Creditors
- 341 Meeting - The meeting of creditors, which is also commonly referred to as the 341 Meeting, allows the creditors, the trustee and the United States Trustee to question the debtor under oath. - read more
- Bankruptcy Petition - The bankruptcy petition is an official form filed by the person who wants to begin the Bankruptcy process. - read more
- Bankruptcy Trustee - A bankruptcy trustee is not an employee of the United States (U.S.) federal government but is appointed by the U.S. Trustee, who is an employee of the Department of Justice. - read more
- Creditors Meeting - The Creditor\'s Meeting is intended to show the debtor has honestly stated their assets, debts and income for the bankruptcy filing. Debtors who do not attend the 341 Meeting may have their bankruptcy case dismissed. - read more
- Liquidation - Chapter 7 Bankruptcy is known as a \"liquidation\" bankruptcy and creditors will be paid from the liquidation of the debtor\'s assets. - read more