What Is a 341 Meeting of Creditors During a Texas Bankruptcy?

 Posted on April 29, 2021 in Bankruptcy Procedure

The United States Bankruptcy Code allows for different types of bankruptcy under certain circumstances. Only some of these are available to individuals, with the two most common types of bankruptcies being Chapter 7 and Chapter 13 bankruptcies. Even though the steps taken to discharge debts are different, both Chapter 7 and Chapter 13 bankruptcies must take a few common steps. One of those steps is the meeting of creditors, also known as the "341 meeting of creditors" or the "341 hearing" after the portion of bankruptcy code it is written into. No matter the type of bankruptcy you end up filing for, understanding the steps of the bankruptcy process are important.

What Is a 341 Meeting of Creditors?

In most cases, you will not have to appear in court before a judge to complete your bankruptcy. One of the most important steps of the bankruptcy process is the 341 meeting of creditors, which typically takes place in a courthouse, with a trustee presiding over the hearing, rather than a judge. The purpose of the meeting of creditors is essentially for the bankruptcy trustee to verify your identity, ensure your forms are filled out correctly and that all of the information given is accurate.

What Will Happen During the Meeting?

At your meeting of creditors, your trustee will likely also have scheduled other cases to be heard at the same time. Once your name is called, your trustee will ask you to verify your identity before beginning. Once you have done that, the trustee will then have the opportunity to ask any questions pertaining to your finances, such as whether or not you are expecting any sources of income in the future, such as inheritance. Your trustee may also ask you to verify information about your job, income, assets, and other information they wish to clarify. Your creditors, or the entities you owe money to, are notified of the hearing and have the opportunity to appear at the hearing and ask questions relating to your financial situation, though this is uncommon.

Speak with Our Kerrville, TX Bankruptcy Attorney Today

It is entirely normal to feel nervous about your meeting of creditors, but understanding what it is and why you must attend it can help ease some of the anxiety you may be feeling. At the Law Office of Chance M. McGhee, we will help you understand all of the steps of the bankruptcy process as well as your options for debt relief. To schedule a free consultation with our skilled Boerne, TX bankruptcy lawyer, call our office today at 210-342-3400.

Sources:

https://www.investopedia.com/terms/1/341-meeting.asp

https://www.justice.gov/ust/file/nactt_201509.pdf/download