What is a "Meeting of Creditors" for a Chapter 7 Filing?

The meeting of the creditors, also called the 341 meeting, is a court proceeding which involves chapter 7 creditors, individuals, their attorneys and a bankruptcy trustee. The meeting is required for both chapter 7 and chapter 13 bankruptcy cases. Typically, the meeting of the creditors occurs within 30 to 60 days after people file the chapter 7 bankruptcy cases.

Chapter 7 Creditors Aren’t Required to Attend, but Individuals Are

Although the term meeting of the creditors implies that people, also called debtors, will sit down with all their creditors in a courtroom and duke things out, it’s misleading. The meeting doesn’t happen in a courtroom, but an office. In addition, it is extremely unlikely that chapter 7 creditors will appear at the meeting, according to Allmand & Lee, a debt relief agency. However, individuals are required to attend. If they don’t, then the bankruptcy cases can be automatically dismissed.

The Purpose of the Meeting Is to Confirm or Object to the Chapter 7 Case

The bankruptcy trustee conducts the meeting of the creditors which may last minutes. During the meeting, the trustee reviews the chapter 7 paperwork and asks people questions. The questions range from people’s financial affairs to the accuracy of the bankruptcy schedules. More importantly, with chapter 7 bankruptcy cases the bankruptcy trustee verifies that people are eligible to file. Also, it’s their responsibility to make sure that people haven’t transferred any property or money to avoid being included in the bankruptcy cases. If creditors attend the meeting, they may object to the chapter 7 case.

Debts Are Discharged After the Meeting Is Over

After the meeting of the creditors, the bankruptcy trustee may request non-exempt property individuals have. The non-exempt property will sold and proceeds distributed to creditors. However, this is rare because people usually don’t have non-exempt property to sell. Also, after the meeting people must receive credit counseling before the debts are discharged or eliminated. Once the session is finished and a certificate of proof is provided to the bankruptcy court, the debts are discharged.   

Consult an Experienced Bankruptcy Lawyer to Prepare For the Meeting of the Creditors

An experienced bankruptcy lawyer is there for people throughout the chapter 7 bankruptcy process. The lawyer will prepare their clients for the meeting of the creditors. More importantly, the bankruptcy lawyer will sit along side people during the meeting.