In Chapter 7 bankruptcy , a meeting of creditors takes place with attendance being mandatory for the debtor. It's a small hearing that allows creditors to get information about finances of the debtor. The meeting may also be referred to as the 341 hearing.
The meeting of creditors allows the bankruptcy trustee and creditors to review your financial situation while asking questions about your filing. The meeting also verifies information presented in your bankruptcy petition. Debtors should keep in mind you are under oath when asked questions about your situation; they should be answered to the best of your knowledge. Questions asked help determine the accuracy of your petition.
In most cases, a judge may not be present unless debt is being reaffirmed or a discharge is being challenged. The meeting will be conducted by your bankruptcy trustee. Creditors listed in your bankruptcy documents are invited to attend, but many often chose not to since the meetings are on a limited timetable. In some cases, a creditor may be present if they suspect fraud or the debtor is hiding assets.
The meeting is about an hour and the trustee appointed to your case will examine you under oath. This process is quite simple since it is verifying information filed with the court (your bankruptcy petition). You may also be questioned about any assets you may have. During this time creditors in attendance may ask questions. In most cases, the bankruptcy trustee will conclude the hearing if no additional information is needed; getting you another step closer to obtaining your discharge upon meeting necessary requirements.