The 341 Meeting of Creditors Hearing: What to Expect in a Chapter 7 or a Chapter 13

If you have recently filed for bankruptcy, your lawyer has likely told you that you will need to attend a hearing, also called the 341 Meeting of Creditors, in a few weeks. Many clients in bankruptcy are anxious about the 341 Meeting of Creditors. This blog post will tell you what you can expect at your 341 Meeting of Creditors for a no-asset, below-median income Chapter 7; and for a Chapter 13 in the District of Minnesota.

Many clients wonder if the 341 takes place in open Court. It does not. In Chapter 7 cases, the 341 takes place in a large conference room at the Courthouse, but it is not held in open court in front of a judge. A Chapter 7 trustee (a lawyer who is appointed to oversee and administer the Chapter 7 bankruptcy process) presides over the hearing. The proceedings are recorded using recording equipment, but there is no court reporter. Other Chapter 7 debtors will be in the room, waiting with their attorneys for their turn to meet with the trustee. The debtors are sworn in at the beginning of the hearing so everything that is said is “under oath.” In a Chapter 13 case, the 341 takes place at the office of the Chapter 13 trustee, and is administered by a lawyer who represents the Chapter 13 trustee. No other debtors will be present in the room during a Chapter 13 341 Meeting of Creditors. The proceedings are recorded.

Many of our clients at Josh Johnson, Attorney at Law, are concerned about the term “Meeting of Creditors”. It’s important to know that in most of the cases Josh handles, creditors almost never appear at the 341 Meeting of Creditors. All of the creditors are sent a notice of the hearing, and they are welcome to attend and ask questions of the debtor, but it rarely happens.

Clients are often concerned about what to wear to their 341 Meeting of Creditors. Josh generally recommends that you wear business casual clothing. You do not want to imply disrespect by arriving in jeans and a T-Shirt, but this is not the moment to show off any fancy clothing or jewelry. A happy medium would be slacks or a skirt with a button-down shirt, sweater, or blouse, or something along those lines.

Many of our Chapter 7 and Chapter 13 clients wonder if they will be asked how or why they accumulated their debt, or if they will be asked to explain themselves. Generally, the trustee does not ask debtors any specific questions about how or why they incurred debts like medical debt, credit card debt, student loans, past-due mortgage arrears, or unpaid home equity loans. The trustee sees many similar situations and generally understands how and why people have gotten behind on these types of consumer debts. If you used a significant amount of credit in the weeks or months immediately before you filed for bankruptcy this could potentially be an issue, but if it is you will have already discussed it with your lawyer beforehand.

In a Chapter 7 bankruptcy case, the trustee will ask to see identification (most often a driver’s license) and a social security card or other form of proof of your social security number. He or she will ask to see your most recent tax return and your most recent bank, IRA, and investment account statements in order to verify your assets at the time of filing. If there are unusual transactions on your statements, or if your account balance is substantially different than what you stated it was at the time of filing, you will be asked about this. The trustee may ask to see vehicle titles to verify ownership and any liens.

(For more information about how your lawyer will help you prepare documents for your 341 Meeting of Creditors in Chapter 7 bankruptcy, see my February 21st blog post: blog post: https://www.joshjohnsonlaw.com/chapter-7-bankruptcy-preparing-meeting-creditors-district-minnesota.)

In a Chapter 13 bankruptcy case, the attorney for the Chapter 13 trustee will identify you and review recent financial account statements in the same manner as noted above for Chapter 7 cases. The trustee’s attorney will have made a detailed review of your bankruptcy filings, including your Form B22C and your proposed Chapter 13 repayment plan prior to the hearing. (Form B22C is a form your attorney filed on your behalf as part of your bankruptcy filing. It shows your income over the six months prior to your bankruptcy filing, and tallies certain eligible expenses based on your actual expenses and the allowable expenses for your district.) It is very common for the trustee’s attorney to object to certain details in the Form B22C. It is also fairly common for the trustee’s attorney to object to specific clauses or language in your proposed repayment plan, or to object to the amount of the plan. Finally, the trustee will likely ask you questions about your income and expenses and ask to see proof of recent income. (Your attorney will review your income and expenses with you before your hearing and will let you know what documents you need to have with you.) If the trustee’s attorney objects to any of the above, your lawyer will advise you about your next steps.