What is a 341 Meeting and What Role Does it Play in Bankruptcy?

The 341 meeting is where you will sit down with the trustee that's been assigned to your bankruptcy case. Its role is the point at which any creditors who may object to your bankruptcy will show, as well as putting you under oath to answer questions. This meeting is the turning point in the process that leads up to the final discharge.

The Meeting of Creditors

Creditors are given a chance to protest your bankruptcy at the 341 meeting. If, upon examination of your petition, they find that you have funds to pay off a debt, they can ask the trustee to not discharge their particular debt. The trustee can then chose to decide in their favor or not and order that the debt be paid. If the trustee finds in the creditors favor, then you are legally obligated to pay. That particular will be not be discharged through bankruptcy. For the most part, creditors do not show up to the meeting. This is especially true of cases where the debt is mostly consumer related. There may be situations where agreements for assets may not have been made before the meeting and creditors will show. Creditors will ask the trustee for the assets in question to be turned over and inform of their plans to dispose of said assets.

What Happens During The Meeting

A meeting will last about 20 minutes unless creditors or other involved parties show up. It's a very straightforward process when it's you, your attorney and the trustee. You will be sworn in to tell the truth and then asked a series of questions about your filing. Questions involve verifying your financial situation as it stands and if there may be any changes in the near future which would affect your ability to pay. If the trustee is satisfied with your answers, he or she will recommend to the judge that your case be discharged. In the case that they find that you perjured yourself on the petition or during the meeting, they can file an objection and basically sink your entire bankruptcy. In short, do not ever lie during your bankruptcy no matter how embarrassing the matter may be.

A Lawyer's Role at the Meeting

Your lawyer will be at your side during the meeting, prepared to object to any question the trustee may ask or to respond to any creditors that show. They will inform you about what to expect for the meeting and guide you through the process to make it as painless as possible. Ultimately they are there to protect you and your rights as well as your assets.