What is the 341 First Meeting of Creditors and what happens there?
The Section 341 Hearing, also called the First Meeting of Creditors, is a formal hearing conducted by a local attorney who has been assigned to your case as a Bankruptcy Case Trustee. At the 341 Hearing, the Bankruptcy Case Trustee asks you some of the same questions that we asked you prior to filing your bankruptcy case. The questions are aimed at determining if there are any assets which the trustee may be able to capture and sell to generate money for the creditors. Actually taking possession of assets by the Trustee is the exception and not the rule. Trustees typically allow you to pay over the cash value of those assets. The thorough review of your financial situation conducted by our office will permit you to know well in advance of this hearing if and whether the Trustee will be looking to you to turn-over assets or cash value of assets. Like you, we do not like surprises.
In addition to the Trustee, any of your creditors is also invited to attend the hearing and ask questions about your situation. The appearance of a creditor is a rare occurrence. Occasionally a secured creditor may appear to inquire about whether or not you are maintaining any insurance required under your purchase contract like homeowner's insurance or automobile liability insurance.
