What Will Happen at the 341 Hearing, or Bankruptcy Meeting of Creditors?Dallas Legal News
If you are involved in a bankruptcy case for your business, you will endure what is known as the 341 hearing, or the meeting of creditors to move forward with your bankruptcy case. This meeting is required by section 341 of the bankruptcy code, which is how it got its name. Many people might feel a bit afraid of what to expect when it comes to their bankruptcy meeting, but the truth is that this is a very short meeting that could last as little as 10 minutes in most cases. Still, you probably have some questions about what to expect and what will happen when you attend this meeting.
How to Prepare
If you are going through Chapter 7 bankruptcy, you will attend the 341 hearing around 21-40 days after your initial bankruptcy filings. At this meeting, what you will generally do is provide proof of identification and answer questions about your filing to creditors, who are hoping that they will acquire what is owed to them.
In most cases, your trustee, who also happens to be many people’s attorney, will come with you to ensure that your bankruptcy estate is upheld in the best manner and that creditors gain a better understanding that they will receive the money they are owed following your bankruptcy. There are some things that you want to do before your meeting, of course.
The first thing that you should do is to review your bankruptcy petition. You might find that there are discrepancies in your petition, which will make it impossible to move forward without making the necessary corrections. If you notice that something isn’t correct on your petition, you want to file an amendment before you have your 341 hearing. You also want to remember what changes are being made so that you can bring them to the trustee’s attention at the beginning of the hearing. This is because you don’t want to look like you’re concealing information or not being forthcoming.
You also want to prepare by knowing what you need to bring with you to the hearing. Some of the aspects include a photo ID, social security card, bankruptcy papers, proof of income, recent bank statements, and any other documents that were requested by creditors before your meeting.
Questions You Might Be Asked
The meeting is used as a way for creditors to ask you specific questions as you move along in the bankruptcy process. Here are just a few examples of questions you might be asked:
- How did you come up with the value for certain items such as your house or car?
- Have you made any property transfers within the last year?
- Do you anticipate to receive an inheritance in the future?
- Will you receive any property in the next year related to a divorce?
- Do any entities owe you any amount of money?
How We Can Help
At MJ Watson & Associates, our experienced bankruptcy attorneys in Texas have helped many clients receive the best outcome in their bankruptcy case. We have handled many 341 hearings for those in need as they work through the Chapter 7 bankruptcy process for the first time. If you are in need of legal assistance through this challenging time, please do not hesitate to reach out to us for more information at 214-965-8240.