People who are having financial trouble many times steer away from filing bankruptcy because of fears of what might happen during the proceeding.
There are urban legends about how the bankruptcy trustee comes into the meeting of the creditors to grill the debtor and seize all their assets.
This is so far from the truth.
Everyone who files bankruptcy, whether it's Chapter 7 or Chapter 13, is required to attend the 341 meeting or meeting of the creditors.
What's funny is, the meeting rarely involves any creditors.
Typically, the 341 meeting lasts only about 10 minutes and consists of the trustee asking questions about your finances and property.
Unless you're hiding something, you really have nothing to worry about.
When an individual makes a decision to file for bankruptcy they usually consult a bankruptcy attorney to find out which chapter would benefit them best.
Next, the person will supply the bankruptcy attorney with all of their financial records, so the attorney can prepare the bankruptcy petition.
While the bankruptcy petition is being prepared the debtor will be required to take a pre-bankruptcy credit counseling course.
When everything is ready to go the bankruptcy attorney will file the petition with the court.
At that time, the court will schedule the 341 meeting, or meeting of creditors, usually, about 4 to 6 weeks after the bankruptcy filing date.
Now it's time for the debtor to enjoy the quietness and the benefits of the automatic stay that stops all collection efforts against them from their creditors.
The debtor should consult with their bankruptcy attorney before going to the 341 meeting.
It's a good idea to read the entire bankruptcy petition prior to the 341 meeting to make sure you understand what's in there.
Any fears or questions about something you might have left out should be discussed with your bankruptcy attorney prior to the meeting.
You probably shouldn't wear beat up clothes to the meeting, but you won't need a new suit either.
The meeting of creditors is similar to a deposition, since the debtor is under oath and it is recorded, but it's not an actual court appearance and there will be no judge there.
Rarely do any creditors ever show up unless there's questions about property or if there is fraud involved.
Don't forget to bring your Driver's license, Social Security card, pay information and bank statements.
Generally, the bankruptcy trustee will ask only a few questions at the meeting;
It's a good idea to get there a little early and watch some other 341 meetings in progress to ease your fears.
The worse thing to do is to get all upset and worry about it, because the meeting is really no big deal.
If you have any concerns contact your bankruptcy attorney and let them know what you're worried about and hopefully they will be able to answer your question sufficiently.
When it comes to filing bankruptcy, remember, honesty is the best policy.
The bankruptcy trustee has access to many resources that should not be taken for granted.
If you have nothing to hide you have nothing to worry about.
There are urban legends about how the bankruptcy trustee comes into the meeting of the creditors to grill the debtor and seize all their assets.
This is so far from the truth.
Everyone who files bankruptcy, whether it's Chapter 7 or Chapter 13, is required to attend the 341 meeting or meeting of the creditors.
What's funny is, the meeting rarely involves any creditors.
Typically, the 341 meeting lasts only about 10 minutes and consists of the trustee asking questions about your finances and property.
Unless you're hiding something, you really have nothing to worry about.
When an individual makes a decision to file for bankruptcy they usually consult a bankruptcy attorney to find out which chapter would benefit them best.
Next, the person will supply the bankruptcy attorney with all of their financial records, so the attorney can prepare the bankruptcy petition.
While the bankruptcy petition is being prepared the debtor will be required to take a pre-bankruptcy credit counseling course.
When everything is ready to go the bankruptcy attorney will file the petition with the court.
At that time, the court will schedule the 341 meeting, or meeting of creditors, usually, about 4 to 6 weeks after the bankruptcy filing date.
Now it's time for the debtor to enjoy the quietness and the benefits of the automatic stay that stops all collection efforts against them from their creditors.
The debtor should consult with their bankruptcy attorney before going to the 341 meeting.
It's a good idea to read the entire bankruptcy petition prior to the 341 meeting to make sure you understand what's in there.
Any fears or questions about something you might have left out should be discussed with your bankruptcy attorney prior to the meeting.
You probably shouldn't wear beat up clothes to the meeting, but you won't need a new suit either.
The meeting of creditors is similar to a deposition, since the debtor is under oath and it is recorded, but it's not an actual court appearance and there will be no judge there.
Rarely do any creditors ever show up unless there's questions about property or if there is fraud involved.
Don't forget to bring your Driver's license, Social Security card, pay information and bank statements.
Generally, the bankruptcy trustee will ask only a few questions at the meeting;
- What is your name and address?
- Did you read your bankruptcy petition and is all of the information correct?
- Did you sign your bankruptcy petition?
- Are all your debts listed in the petition?
- Did you list all of your property and possessions?
- Has your income or expenses changed since you filed the bankruptcy?
- Have you transferred or sold any property to anyone in the last year prior to the bankruptcy being filed?
- Have you transferred or given any money to anyone in the last year prior to the bankruptcy being filed?
- Did you read the statement of information?
It's a good idea to get there a little early and watch some other 341 meetings in progress to ease your fears.
The worse thing to do is to get all upset and worry about it, because the meeting is really no big deal.
If you have any concerns contact your bankruptcy attorney and let them know what you're worried about and hopefully they will be able to answer your question sufficiently.
When it comes to filing bankruptcy, remember, honesty is the best policy.
The bankruptcy trustee has access to many resources that should not be taken for granted.
If you have nothing to hide you have nothing to worry about.