What is a 341 Meeting of Creditors?

If you file for bankruptcy under Chapter 7 or Chapter 13 in Arizona, under Section 341 of the United States Bankruptcy Code, the bankruptcy case trustee and your creditors will have an opportunity to meet with you in a court hearing. This meeting of creditors is often referred to as a “341 meeting of creditors.”

In this post, we discuss the purpose of the 341 meeting, how to prepare for it, what happens on the day of the meeting, and what remains for you to do once the 341 meeting is over.

If you want to make the bankruptcy process easier, please call Stone Rose Law at (480) 739-2448 or reach out via our contact form.

What is the Purpose of a 341 Creditors Meeting?

When you file a petition for bankruptcy, you will identify your debts and your assets. The bankruptcy court will then schedule your 341 meeting of creditors, which usually takes place about 30 to 45 days after you file.

The main purpose of the 341 is for the trustee, representative of the United States Trustee, and creditors to ask you questions about your statements and schedules under oath. This is also an opportunity for the Trustee to verify identification and confirm that you understand the bankruptcy process.  

• Your assigned trustee has different key responsibilities in a Chapter 7 or 13 bankruptcy. In a Chapter 7 bankruptcy filing, the trustee’s role is to look for any nonexempt assets that can be liquidated to pay creditors.
• In a Chapter 13 bankruptcy, the trustee evaluates your assets against your proposed debt repayment plan to determine whether the plan is practical.

How to Prepare for Your 341 Meeting

Generally, your required attendance at a 341 bankruptcy meeting is a prerequisite to having your debts discharged. 

Except in rare cases involving extreme hardship, you must attend your scheduled 341 meeting even if you have hired a lawyer to represent you. You should receive a letter from the trustee about 10 to 15 days after you file, setting the date of the 341 meeting. If you are represented by an Attorney, you should receive this information within 1-2 days of your filing.

As of 2020, almost all 341 meetings are conducted virtually using Zoom. In addition to the date and time on your notice of the 341 meeting of creditors, a specific Zoom meeting ID and passcode are provided. The US Trustee Program provides detailed instructions on how to participate in these virtual video conferences.

If you have a bankruptcy attorney, then your attorney will help you get ready for the 341 meeting and will attend the meeting with you. In particular, your attorney will:

• Complete a Zoom meeting with your prior to the scheduled 341. 
• Reviewed your bankruptcy schedules with you to ensure they are accurate and complete and to help you correct any inaccurate entries and financial changes.
• Make sure the trustee has received the required documentation before the meeting of creditors, like paycheck stubs, bank account statements, and income tax returns.
• Provided the questions you can expect the trustee to ask you during the meeting.
• Help you anticipate which of your creditors are likely to attend the meeting.

What Happens During the 341 Creditors Meeting?

The day of the creditors’ meeting typically follows a set pattern with few surprises. You should join the meeting a few minutes early in case of any technology issues. 

Depending on the assigned Trustee, they may have you wait in the virtual waiting room and have individuals enter the meeting one at a time. Other Trustees will allow all parties scheduled for the same time block into the meeting and will request the parties in the case they are calling to unmute. The meetings are now run quite efficiently. 

These are a few videoconference expectations:

• You must join the meeting in a quiet space. You cannot be in public with people in the background. 
• You must have a working camera and microphone. It is recommended to complete a test session prior to your meeting.
• Your appearance matters-dress business casual.

• Have a a valid photo government identification card, such as your driver’s license to show the Trustee in case they request for it. 
• Have your Social Security card or other proof of your Social Security number (like a Form W-2) available in case the Trustee would like to see it. 

What Happens During Your 341 Meeting Time

You, your attorney, the bankruptcy trustee, and any creditors who choose to attend will be present in the virtual meeting room when your debtor’s meeting begins. Depending on the Trustee, other Debtors scheduled for the same time may be in the virtual room as well. The bankruptcy court judge will not be there.

Most often, few if any of your creditors will be at the meeting. This is especially true for large creditors, like credit card companies or banks. In a few instances, some smaller creditors that you have more of a personal relationship with may be more likely to attend, like a former business partner, but you should not be surprised if no creditor appears.

When the bankruptcy trustee calls your meeting, the trustee will swear you in. After that, the trustee will ask you questions about your assets and your financial matters. The trustee may ask you about any of the following topics:

• Your name and address.
• If you have reviewed your bankruptcy petition schedules before signing them, and if you need to make any corrections to your bankruptcy papers.
• If you have listed all of your assets and your liabilities in your petition.
• Whether you are making any domestic support obligations, like spousal or child support payments.
• Whether you are owed any money for any reason..
• If you expect to inherit any money in the next six months.
• If you provided true and correct taxes to the Trustee for review. 

The list above is not exhaustive, but representative. Depending on your answers, the trustee may ask you some follow-up questions.

Once the trustee has finished asking you questions, if the trustee is satisfied with your answers, your creditors (if any) will have the opportunity to ask you questions. Once these questions are concluded, then in almost all cases, your 341 meeting will be over.

In rare cases, such as if your creditors have a lot of questions for you, the trustee may continue your meeting to another day for further questioning. But as long as you have provided verifying documents and your answers to questions do not suggest that you are committing perjury, this will not happen.

Although your 341 meeting will be scheduled for 30 minutes, it is not uncommon for these meetings to last about 5 minutes. There are usually 6 other cases scheduled for the same 30-minute block. 

What Happens After the 341 Meeting?

Once your meeting is over, in most cases, all that remains for you to do is to complete your second required debtor education course within 60 days after the 341 meeting date and file your course completion certificate with the bankruptcy court.

If you filed for Chapter 13 bankruptcy, you must wait for confirmation.

Do You Have Questions About How Bankruptcy Works in Arizona?

If you want to make the bankruptcy process easier, call Stone Rose Law to speak with an experienced Arizona bankruptcy lawyer. In a free consultation, we can discuss your present financial situation, evaluate your debt relief options under federal bankruptcy law, and help you decide on the right path.

You can reach us at (480) 739-2448 or use our online contact form to ask a question about our services or to schedule a free initial consultation. You can also use our Bankruptcy Calculator for further information on how long it can take to pay off your creditors.