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)
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 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.