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What goes on at the Chapter 7 Meeting of Creditors?

Chapter 7 meeting of creditors is a relatively simple meeting where a trustee appointed by the U.S. Bankruptcy Court and of the debtor and the debtor's attorney must appear to be examined under oath regarding the income, assets and schedules that were filed in the bankruptcy case. Creditors to have an opportunity to appear, that's why they call it a Section 341 Meeting of Creditors, however, in most cases, no creditors will attend. Creditors are typically relying on the chapter 7 bankruptcy trustee to examine the debtor and to make a determination as to whether or not there are any nonexempt assets that can be administered and sold to pay back a portion of the debt. The reason why I say most cases never appear and they rely on the trustee is because most cases are no asset cases. A no asset case is where the trustee makes a finding that there is nothing that can be taken, sold and paid to the creditors pro rata. If there was something that could be sold and taken, a chapter 7 would probably not be the advisable case from an attorney standpoint. If there are assets that can be administered, chapter 13 is going to be the best bet.

The meeting will last approximately 5 to 10 minutes, depending on the trustee and the number of questions he or she wants to ask of the debtor. The debtor is simply going to ask yes/no and be honest and truthful in all of the answers given before the trustee. The trustee is not trying to trick the debtor; the trustee is only trying to make a determination as to whether or not there are assets available for the administration to go towards the unsecured creditors. Your attorney will be with you at your 341 meeting of creditors. You need to bring a photo ID and your Social Security card and everything should go as planned.

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