People who are in debt know the routine of debt collectors and collection agencies all too well. A person in debt is called a debtor. The person who must be repaid for the debt is called a creditor.
Everyone has heard the term bankruptcy. Most people think a bankruptcy involves the ability to no longer have to pay past debts and damage to a person’s credit report. Generally this is accurate, but incomplete.
Types of Bankruptcy Filings and Results
There are several different types of bankruptcy filings and proceedings. Some types work better for individuals and some work better for businesses. Some types of bankruptcy allow erase, or discharge the debts owed. Some types of debts are not dischargeable in bankruptcy, such as child support or student loans. Credit card debt is dischargeable. Some types of bankruptcy, however, do not discharge debt but rather allow for reorganization or restructuring so that a person may continue to pay off those debts in a more feasible timeframe.
After filing for bankruptcy a person’s creditor report will indicate this for a number of years and a person should begin attempting to rebuild his or her credit.
Section 341 Meeting After Filing Bankruptcy
There are many aspects of bankruptcy about which most people do not know. Most of the most daunting aspects of bankruptcy about which people do not know involve the legal process beginning with filing. After filing, most debtors must attend a section 341 meeting.
The section 341 meeting, also called the meeting of creditors or creditor’s meeting, is a meeting that a debtor is required to attend after filing bankruptcy. The meeting is conducted by the case trustee or the U.S. Trustee.
The Debtor Must Appear
The debtor must appear at this meeting and testify, under oath, about his financial condition, assets and debts. The debtor will be asked about the information he has placed on his bankruptcy paperwork.
Creditors May Attend
Creditors may also attend this meeting and question the debtor, although the meeting is directed by the trustee assigned to the case and most of the questions originate with him.
A Debtor’s Failure to Appear
If a debtor fails to attend the meeting, his bankruptcy case can be dismissed. If you are unable to attend the creditor’s meeting on the day it is scheduled, you must contact the Trustee assigned to your case and request the matter be continued. The Bankruptcy Clerk’s Office cannot answer any question about changes to the 341 Meeting of Creditors. All questions about this meeting must be directed to the Trustee assigned to the case or the U.S. Trustee’s Office. The Office of the United States Trustee is an Executive Branch agency that is part of the Department of Justice. It is responsible for monitoring the administration of bankruptcy cases and detecting bankruptcy fraud. It has other responsibilities as well.