Today I’ll talk about a subject that can cause debtors a lot of distress: The Meeting of Creditors.
As a Colorado Springs Bankruptcy Attorney, it’s not unusual to find that most of my clients are somewhat apprehensive about the meeting of creditors, also known as the 341 meeting since it’s required under Section 341 of the Bankruptcy Code. Most of them have never been to one and they fear they’re going to be subjected to ridicule by the trustee.
In the week preceding the 341, I make it a point to send an e-mail to my clients with a link to a blog post I did approximately a year ago which explains what happens there. The post contains a video of a typical creditors meeting, as well as a link to a list of the most commonly asked questions.
In the great majority of cases, there is really nothing to worry about. Sophisticated creditors, like banks and credit card companies, generally do not show up. My experience is that the only people likely to show up are ex-spouses, ex-business partners, landlords and tenants. In the case of ex-spouses and ex-business partners, they may appear to “mess with” the debtor. With landlords and tenants, they’ll sometimes show up because they think they’re supposed to show up.
All and all, the meeting of creditors is usually an informal, 10 minute question-and-answer session with the trustee asking questions and the debtors answering them. I am there, sitting beside my clients to make sure that everything goes as it should.
The vast majority of my clients, after the creditors meeting is over, remark that it was way less stressful than they anticipated.
Other non-Colorado Springs bankruptcy attorneys have also written on bankruptcy M. words:
photo credit: TooFarNorth
