Counties served by the Texas Northern District Bankruptcy Court:

 

Archer, Armstrong, Bailey, Baylor, Borden, Briscoe, Brown, Callahan, Carson, Castro, Childress, Clay, Cochran, Coke, Coleman, Collingsworth, Comanche, Concho, Cottle, Crockett, Crosby, Dallam, Dallas, Dawson, Deaf Smith, Dickens, Donley, Eastland, Ellis, Erath, Fisher, Floyd, Foard, Gaines, Garza, Glasscock, Gray, Hale, Hall, Hansford, Hardeman, Hartley, Haskell, Hemphill, Hockley, Hood, Howard, Hunt, Hutchinson, Irion, Jack, Johnson, Jones, Kaufman, Kent, King, Knox, Lamb, Lipscomb, Lubbock, Lynn, Menard, Mills, Mitchell, Montague, Moore, Motley, Navarro, Nolan, Ochiltree, Oldham, Palo Pinto, Parker, Parmer, Potter, Randall, Reagan, Roberts, Rockwall, Runnels, Schleicher, Scurry, Shackelford, Sherman, Stephens, Sterling, Stonewall, Sutton, Swisher, Tarrant, Taylor, Terry, Throckmorton, Tom Green, Wheeler, Wichita, Wilbarger, Wise, Yoakum, Young

The 341 meeting is presided over by the bankruptcy trustee that was appointed to the case. The meeting is an opportunity for the bankruptcy trustee and creditors to question the debtor under oath regarding their assets, liabilities, and other matters that pertain to the bankruptcy case. 

A meeting of creditors is not an opportunity for creditors to pressure individuals that filed bankruptcy or embarrass them.

341 meetings are held in a meeting room or a courtroom (since Covid-19, most 341 meetings have been held telephonically. It is unknown if this is a permanent change.) When the case is called, the bankruptcy trustee will place the debtor under oath, and ask to see a photo ID and documentation of the debtor’s social security number. This can be presented by the social security card or a printed copy of a 1099 or W2, issued by an employer.

The bankruptcy trustee will then ask a series of questions to confirm the accuracy of the documents filed with the court. The trustee is required to determine whether there are any assets that are not protected through exemptions and identify other issues relevant to the administration of the estate. For a list of most commonly asked questions, click here.

For a Chapter 7 bankruptcy or Chapter 13 bankruptcy meeting of creditors, there will be around ten cases scheduled over an hour-long calendar, each hearing last approximately four minutes. As with all matters affecting a bankruptcy case, the 341 Meeting of Creditors is important to bankruptcy attorneys and their clients, and should be approached with care.

 

MEETING OF CREDITORS:
THE TOP 10 LIST

 

You Must Attend The Meeting Of Creditors

 

The meeting of creditors is the only mandatory appearance that most parties must attend after filing bankruptcy. The 341 meeting must be attended when scheduled, and both spouses must appear if the bankruptcy is a joint case.

There will be several weeks of advance notice, so make arrangements to attend, and plan to meet with your bankruptcy attorney a few minutes early. At the meeting room, there will be an information sheet from the trustee that you must read. Be prepared to confirm that you’ve reviewed that information.

 

There Will Be Several Meetings of Creditors Scheduled
At The Same Time As Your 341 Meeting

 

The time set for the meeting of creditors will be used for a number of individual meetings of creditors. It is not unusual for ten or twelve meetings to be scheduled for the same time. Cases are called one by one, and the parties and their bankruptcy lawyer will sit at a table with the bankruptcy trustee.

It is a public meeting with up to 25 or 30 debtors and attorneys in attendance. Everyone is there for the same reason, and everyone shares the same concerns and apprehension, but the 341 meetings are conducted quickly, and with respect and courtesy.

 

You’ll Need To Verify Your Identity

 

Every bankruptcy attorney and trustee has their stories about mistaken identities and the issues that follow. Although the bankruptcy system is built on trust; it is also built on verification. The trustee is required to verify your identity.

Bring photo identification and a document showing your social security number – such as your social security card or a 1099 or W2.

 

It Is Unlikely That Your Creditors Will Attend The Meeting of Creditors

 

All parties listed on the bankruptcy schedules will receive notice of the meeting of creditors. If any creditors do attend the 341 meeting, it is typically out of curiosity, or to ask whether their debt will be reaffirmed, or to ask about the location and condition of their collateral.

In most cases, the meeting of creditors is not attended by any of the debtor’s creditors. The purpose of the meeting of creditors is largely informational, and the lack of participation by a creditor does not provide an advantage or disadvantage to them or to the debtor.

 

The 341 Meeting Of Creditors Is Not A Court Hearing

 

The bankruptcy law prohibits the bankruptcy judge from attending the meeting of creditors. Although the meeting of creditors is serious business, it is not a court hearing.  No legally binding decisions are being made at this meeting.

The 341 meetings are recorded. Be careful and thoughtful with your answers, and do not make guess as to facts you do not know. Most of the questions can be answered “yes” or “no.”

 

Your Bankruptcy Trustee Will Preside Over Your Meeting

 

The bankruptcy trustee will always preside over the meeting of creditors. The trustee will review your bankruptcy schedules prior to the meeting to identify any possible assets that are beyond your ability to protect, or any payments that were made before filing that the trustee may be able to recover.

Bankruptcy trustees make very little money in the usual case, so they learn how to quickly separate the cases where there are no assets from the cases where there may be assets.

 

You Must Tell The Truth At The 341 Meeting Of Creditors

 

The trustee and any creditor or other party in interest is entitled to ask questions regarding your assets and liabilities, as well as any questions that are relevant to the administration of the bankruptcy case or your right to a discharge.

Be prepared to raise your right hand, be placed under oath, and to tell the truth with an honest and open heart. The only wrong answer to a question from the trustee or a creditor is an untruthful answer.

 

The Trustee Will Ask Required Questions

 

Required questions include:

· Did you review your bankruptcy schedules prior signing?
· Are your bankruptcy schedules true and accurate?
· Do you have any changes to your schedules?
· Did you list all of your assets?
· Did you list all of your debts?

 

The Trustee May Ask Additional Questions

 

The trustee may have discretionary questions. These questions are usually intended to determine whether you might have any nonexempt assets that could be claimed by the trustee or whether there were payments to creditors or transfers of property made before the bankruptcy filing that might be recovered by the trustee.

 

The Conclusion Of The Meeting Of Creditors Will Bring A Feeling Of Relief

 

The trustee will adjourn the 341 meeting of creditors when all questions have been asked and answered, which often takes less than five minutes.

For most parties that file bankruptcy, there are no court hearings with a judge, and the meeting of creditors is the only face-to-face interaction with the trustee or the court system.

In the majority of cases, the bankruptcy will automatically proceed to a discharge of debt after the 341 meeting is adjourned.

It is entirely natural to focus some nervous energy on the meeting of creditors, but most people say “that wasn’t so bad” when the meeting is over.

For many people, the conclusion of the meeting of creditors is the first time that relief from debt seems real, and they begin moving forward with a second chance and a fresh start.