Bankruptcy in Los Angeles: What You Should Know About a Meeting of the Creditors

Are you preparing to file for bankruptcy protection in Los Angeles or elsewhere in Southern California. While it is a big step, bankruptcy can be the best long-term financial solution for a person facing significant challenges. Bankruptcy can be complicated. Your creditors will play a key role in the process. Notably, the federal bankruptcy code requires your case to go through a “meeting of the creditors” before your bankruptcy can be finalized. It is run by bankruptcy trustees—and you are required to attend. Here, our Los Angeles bankruptcy lawyer provides a comprehensive overview of the “meeting of the creditors” and the personal bankruptcy process in California. 

What is a Bankruptcy Meeting of the Creditors (341 Meeting)?

As explained by the United States District Court for the Northern District of California, the meeting of the creditors is “a hearing that all debtors must attend in any bankruptcy proceeding.” It is also referred to simply as a 341 meeting because it comes from that section of the United States Bankruptcy Code (11 U.S. Code § 341). Broadly speaking, the mandatory hearing is the part of the process whereby the bankruptcy trustee and individual creditors get an opportunity to ask questions to the petitioner under oath.

Understanding the Purpose of Meeting of the Creditors

As structured by law, the 341 Meeting is a key part of the personal bankruptcy process in Los Angeles. It is crucial that any person filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy is prepared to take on the meeting of the creditors. Here are four key aspects of the process:

• Review Debtor’s Financial Situation: During the 341 meeting, the bankruptcy trustee reviews the debtor’s financial documents to ensure accuracy and completeness. Along with other things, the trustee will focus on assets, liabilities, income, and expenses. The assessment is designed to ensure that there are no serious discrepancies in the filing. The review also guides the trustee in deciding whether assets can be used to pay creditors.

• Confirm Validity of Debtor’s Information: During the meeting, the trustee verifies the truthfulness of the information provided by the debtor in their bankruptcy petition. The confirmation process involves asking the debtor specific questions under oath to ensure that all financial disclosures are accurate. 

• Provide Overview of Process for Debtor: The 341 meeting is not necessarily an adversarial process. Another key thing is that the trustee provides the debtor with an overview of what to expect in the bankruptcy process, including the steps following the 341 Meeting. The overview helps the debtor understand their rights and responsibilities. 

• Allow Creditors to Ask for More Details: Finally, any creditors that are present at the 341 Meeting will have the opportunity to ask the debtor questions about their financial affairs, including any inconsistencies or general concerns. The law permits creditors to ask questions to gather more information about the debtor’s ability to repay debts or to challenge the discharge of specific debts. 

You are Required to Attend a Meeting of the Creditors

In California, attendance at the meeting of the creditors is mandatory for anyone filing for bankruptcy. It does not matter whether you are filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy. The meeting is a critical part of the bankruptcy process, as it provides an opportunity for the bankruptcy trustee to question the debtor about their financial situation. Failing to attend this meeting can result in the delay or even dismissal of your bankruptcy case. Do not miss the meeting. Further, you need to be properly prepared for a 341 meeting. Be sure to bring all required documentation—from personal identification to tax returns to pay stubs. Your Los Angeles bankruptcy lawyer can help you get ready for a meeting of the creditors. 

Creditors Often Do Not Attend 341 Meetings in Personal Bankruptcy Cases 

While you are required to attend a meeting of the creditors, it is actually optional for the creditors. In fact, it is somewhat uncommon for people to run into their creditors at a 341 meeting in a personal bankruptcy case. While the meeting is intended to give creditors a chance to ask questions about the debtor’s financial affairs, in many cases, they rely on the trustee to conduct the examination. Creditors may choose not to attend because the bankruptcy process is generally straightforward—and they trust the trustee to handle any issues that may arise. 

341 Meeting Will Typically Occur Between 20 Days and 60 Days After Filing 

The 341 Meeting is scheduled relatively early in the bankruptcy process, typically occurring between 20 days and 60 days after the debtor files their bankruptcy petition. The timeline allows for the trustee to gather and review the necessary documents and for the debtor to prepare. How long does the meeting itself take? It depends. With that being said, if creditors do not show up, a meeting can be finished in as little as ten minutes. 

How Our Los Angeles Personal Bankruptcy Attorney Can Help 

Personal bankruptcy is complicated. It is normal to have a ton of questions about the process, including about dealing with creditors. Le’Roy Roberson is a Los Angeles bankruptcy attorney who has the skills and experience to protect your rights. You do not have to navigate a meeting of the creditors on your own. Our Los Angeles bankruptcy attorney will help you get organized, prepare for the meeting, and represent you during the meeting when the day comes. We provide free, confidential initial consultation to people considering filing for personal bankruptcy protection. 

Contact Los Angeles Bankruptcy Lawyer for a Confidential Consultation

At Resolve Law Firm, APC, our Los Angeles bankruptcy attorney is committed to helping clients work towards a brighter and more stable financial future. If you have any specific questions about a meeting of the creditors or bankruptcy more generally, we can help. Give us a phone call now or contact us online for your free, confidential initial consultation. We provide personal bankruptcy representation in Los Angeles, Los Angeles County, and throughout all of Southern California.