What Happens At A Chapter 7 341 Meeting
Chapter 7 341 meetings are held about 4-6 weeks after you file your bankruptcy petition. Shortly after you file, you will be assigned a Chapter 7 Trustee. You will receive a 341 meeting notice which informs you of the date, time, and place of your meeting. If you filed your Chapter 7 bankruptcy with our office, we would also follow up with you to confirm you are aware of the date, time, and place.
In every case, the Chapter 7 trustee will verify your identity through photo ID and proof of social security number. Photo ID includes drivers licence, state issued ID, passport. You can prove your social security number through your social security card or through a W2 or 1099 displaying the number. If possible, you should try to have your social security card. If you dont know where yours is, you can request a replacement social security card online.
The meeting only lasts a few minutes in most cases, but this seems to be the part of the process that scares my clients the most. Theres nothing to worry about! I would have already reviewed everything with you and would know if theres anything that could be a problem. 99.9% of the time, there are no issues at the 341 meeting.
What Happens To Your Secured Debts
Though you have filed for chapter 7 and got discharged from the court, the creditor will run after you ceaselessly. In case you are dropped from making the payment like a loan on your house, automobiles, car with pre-approved loans, the creditor may ask to eliminate your automatic state so that it is possible to repossess and foreclose on the property. It is important to be current to make payments to make sure you are not losing any assets like home automobiles. The creditor may seek a lien against your property as you didnt make a payment on your property. However, you are able to wipe out the lien in Chapter 7 bankruptcy.
What Happens After A 341 Meeting
After all questions have been asked and answered to the satisfaction of the trustee, the trustee will adjourn the 341 Meeting of creditors. For most bankruptcy filers, this is the only in-person appearance they are required to make. There are generally no court hearings before a judge, and the bankruptcy proceeding will automatically move on to a discharge of debts or the finalization and implementation of a repayment plan within a few months.
Although the time leading up to the 341 Meeting may be stressful, the conclusion of the meeting of creditors is the time when debtors feel they have turned the corner and begin to breathe sighs of relief.
Recommended Reading: How Many Trump Bankruptcies
What Happens After Filing For Bankruptcy
Upsolve is a nonprofit tool that helps you file bankruptcy for free.Think TurboTax for bankruptcy. Get free education, customer support, and community. Featured in Forbes 4x and funded by institutions like Harvard University so we’ll never ask you for a credit card.Explore our free tool
In a Nutshell
Knowing what happens after you file bankruptcy can make it seem less intimidating. Read on to learn about filing Chapter 7 bankruptcy, the meeting of creditors, keeping your car, and why creditors must stop contacting you after filing.
Knowing what happens after you file bankruptcy can make it seem less scary. Read on to learn about filing Chapter 7 bankruptcy, the meeting of creditors, keeping your car, and why creditors must stop contacting you after filing.
Your Bankruptcy Won’t Be Over After Your Meeting Of Creditors Learn What Else Has To Happen
Updated By Cara O’Neill, Attorney
Almost everyone who files for bankruptcy must attend a hearing called the meeting of creditors . The bankruptcy trustee appointed to oversee your case will verify your identity, ask questions about your filing under oath, and allow creditor questions if any. Once complete, the bankruptcy trustee will conclude the meeting.
But your case isn’t over after your 341 hearing. You’ll need to do more before you can receive your bankruptcy discharge. Here are some of the things you might need to wrap up before concluding your bankruptcy case.
What Will The Trustee Ask Me
The trustee will review your petition, schedules, and other documents prior to the meeting. After you are sworn in, the trustee will ask you a variety of questions, such as verifying your signature on the bankruptcy documents and confirming that no changes are needed. Then the trustee will go through the petition and schedules to verify the information about your assets and liabilities, income and expenses, and related topics.
The trustee may ask whether you expect to get any money in the future, including from a lawsuit, inheritance, or tax refund. The trustee may also ask what happened to any assets you used to have but sold or transferred within the last couple years.
When the trustee has finished asking questions, any creditors who are present will be allowed to ask questions about your finances and property.
When the questioning is finished, the trustee will conclude the meeting. In rare cases when investigation or more documents are necessary, the trustee can continue the meeting to another date. In most cases, the meeting will be concluded with finality.
How Will Bankruptcy Affect Your Credit Score
A bankruptcy filing will lower your credit score and may stay on your credit report and in public records for some time. Bankruptcy will stay on your credit for 10 years if you filed for Chapter 7 and seven years if it is a Chapter 13 bankruptcy.
However, exactly how much a bankruptcy will affect your credit score will depend largely on your financial situation before filing bankruptcy.
You can take steps to rebuild your credit such as:
- Staying current on your bills
- Getting a new credit card or a secured credit card
- Trying not to borrow more than you can repay
Keep in mind that filing for bankruptcy might do more to help your credit than harm it. Consider what will happen if you continue to hold the debt and miss payments.
Don’t Miss: Has Donald Trump Filed Personal Bankruptcy
You Will Attend Financial Management Courses
Before filing for bankruptcy, you took a credit counseling course. After you file for bankruptcy, you will need to take another course that can help you after your debts are discharged through the bankruptcy process. It is only after you complete these courses that the bankruptcy judge will give you a debt discharge.
What Happens At A Bankruptcy Meeting Of Creditors
The 341 Meeting is held in a courtroom or meeting room, and administrated by the bankruptcy trustee, outside of the hearing of a judge. What happens in a 341 Meeting begins with your arrival at the federal courthouse or other designated building. Once you arrive, you will check a list for your case caption and/or name. The trustee will call between 10-12 cases within the hour, including yours, from the list. You and your attorney will greet the trustee, sit with the trustee and their assistants, if any, and provide documents to verify your identity.
Next, the trustee will ask questions for about 15 minutes to confirm the veracity of the documents you filed with the court such as your petition and schedules. The trustee will try to see if you have assets that should not be protected by the exemptions available in the State of Texas, and to parse any other potential challenges to granting you your bankruptcy. This will be done through a series of questions asked by the trustee and answered by you under oath.
Also Check: How Many Bankruptcy Trump
What Happens After Filing For Chapter 7 Bankruptcy
Chapter 7 is the process of getting relief from the creditors. There are some legal steps for filing chapter 7. After filing chapter 7, there are common financial and legal issues that may happen in your life. In addition, you have to understand what is happening in the creditors meeting, in the event of protection of your property, in your credit life, debts reduction and so on.
When you have got a discharge letter after filing chapter 7, your debts will be wiped out. The trustee also sells your nonexempt property to make payments to your creditor. The trustee will liquidate your nonexempt property and pay them. But exempt property will be as your own because there are state rules in the United States of America to save your exempt property. Chapter 7 is also called liquidation bankruptcy. So you are going to know some important information on what happens after filing chapter 7.
Attending Two Counselling Sessions
All bankrupts are required to attend two financial counselling sessions.
You can elect to have these meetings one-on-one with the trustee or you have the option of attending meetings with other bankrupts that are working with your trustee.
The choice is totally yours.
At these sessions with the trustee you will learn about money management skills and you will learn about the causes of your bankruptcy and how you can avoid the same problems in the future so you can avoid a second bankruptcy.
Don’t Miss: Buying A Car After Bankruptcy Chapter 7
The Trustee Will Ask Required Questions
The trustee will have questions that the trustee is required to ask, including:
· Did you review your bankruptcy schedules prior to 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?
What Questions Will The Bankruptcy Trustee Ask
The trustee is essentially trying to verify the information in your bankruptcy petition. Since you provided us all the information that goes into the petition you already know all the right answers! Just remember that the right answers are the truthful answers so its not like you need to study or have a game plan. Some typical questions might include some variation of the following:
- -Have you previously filed for bankruptcy in Michigan or another state? If so, when?
- -To the best of your knowledge, is the information in your bankruptcy petition true and correct?
- -Is this your signature?
- -How long have you lived in Michigan?
- -Does anyone owe you money? Do you have any reason to sue anyone?
- -Is your name on any other property?
- -Have you filed your income taxes yet?
- -Have you read the bankruptcy information sheet?
- -Do you own any other motor vehicles such as boats, ATVs, or motorcycles? What about trailers?
- -Have your wages been garnished within the last 90 days? If so, how much was garnished?
- -Have you paid any relatives back recently? When? How much?
- -Do you have any other sources of income other than whats listed in your bankruptcy petition?
- -How much did you pay your attorney to file bankruptcy?
- -Do you owe or are you owed any domestic support obligations?
- -Do you have any questions for me?
Read Also: Auto Financing After Bankruptcy Discharge
What Are Commonly Asked Questions During A Meeting Of Creditors In A Chapter 7 Or Chapter 13 Bankruptcy
At Modestas Law Offices, our bankruptcy clients frequently ask what to expect at the meeting of creditors that takes place after the bankruptcy filing. Often, clients are nervous or worried about the process, but in most cases the meeting goes smoothly and quickly. Understanding what the meeting is and knowing what to expect will alleviate a lot of the concern you feel ahead of time.
Talk With A Burr Ridge Illinois Bankruptcy Attorney
Modestas Law Offices assists clients with Chapter 7 or Chapter 13 bankruptcy cases. We serve Illinois clients in Chicago, Cook County, DuPage County, and Will County. To accommodate clients who are busy during weekdays, we are available to meet in the evening and on weekends.
Contact us to schedule your initial free consultation.
Read Also: How To File Bankruptcy In Illinois
What Happens After The 341 Meeting Of Creditors In Chapter 7 Bankruptcy
In Chapter 7 bankruptcy, most debtors dread the 341 meeting of creditors and are relieved to find it’s simple and over in no time . However, just because the trustee concludes your meeting doesn’t mean that you are immediately entitled to a discharge of qualifying debt.
If you hadn’t already done so, you’d need to complete a debtor education course and file the completion certificate. If you don’t do it, the court will dismiss your case without prejudice . You’d have to pay another filing fee to reopen the case and file your certificate before receiving the debt discharge.
Also, to your discharge within 60 days of the first date set for your meeting of creditors, although this rarely happens. If no creditor objects by the deadline and you’ve satisfied all other requirements, you’ll receive your discharge in the mail.
How Does Filing Bankruptcy Affect You
The effects of bankruptcy will vary largely depending on what kind of bankruptcy you file, your financial situation after bankruptcy, and how responsibly you manage the process of rebuilding your credit.
It may be difficult to secure credit or larger loans for several years. Financial responsibility after bankruptcy can minimize the effects somewhat, and some credit card companies actually seek out individuals who have just filed for bankruptcy to get them as a customer.
Read Also: Online Bankruptcy Preparation Services
What Happens In Your Personal Life After Bankruptcy
Bankruptcy is devastating and disaster in financial life. You may try heart and soul to be okay financially. But there are some changes in terms of financial life. No financial body is going to make a relation with you like mortgage loan, offer a credit card full of facilities and some critical bindings to offer you different types of loans.
Youll 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 pay stub.
Read Also: How Many Times Has Trump Filed Bankruptcy
Find Out What Happens In Your Bankruptcy Case When Your Meeting Of Creditors Is Over
Updated by Cara O’Neill, Attorney
COVID-19 Updates: Retirement and Stimulus Fund Protections Safe Filings.
If you’re one of the millions laid off due to COVID-19, bankruptcy can erase bills while keeping most retirement accounts intact. And you don’t need to worry about losing your stimulus fundsthe new bankruptcy “recovery rebate” law protects stimulus checks, tax credits, and child credits. Bankruptcy lawyers will consult with you virtually, and courts continue to hold 341 creditor meetings telephonically or by video appearance unless an in-person meeting is necessarysee the U.S. Trustee’s 341 meeting status webpage for details.
Streamline your researchtake our bankruptcy quiz to identify potential issues with your bankruptcy case.
Everyone who files for Chapters 7 and 13 must attend a hearing called creditors’ meeting . Here’s what happens after the initial creditors’ meeting:
- If the trustee or a creditor needs documents or more questions answered, the trustee will continue the meeting to another day.
- If the trustee and creditors are satisfied, the trustee will conclude the creditors’ meeting.
What happens after the trustee concludes the meeting will depend on whether it’s a Chapter 7 or 13 case.
- In Chapter 7, you’ll file your debtor education certificate and wait for your discharge.
- In Chapter 13, you’ll go to a repayment confirmation hearing and, if the court confirms your plan, you’ll make the required payments over three to five years.
Optional: Complete Your Reaffirmation
If you’re reaffirming your car loan, you have 45 days from the date of the 341 meeting to get the signed reaffirmation agreement to the car loan lender. If you don’t, the automatic stay expires and the bank can repossess the car without further notice. Unless the attorney representing the filer signs off on the reaffirmation agreement, the court has to approve it. This has to be done before the court can enter the discharge order.
Recommended Reading: How To File Bankruptcy In Missouri
Negotiating With The Trustee
Most Chapter 7 bankruptcy cases are what is called “no-asset” cases, which means everything the filer owns is protected through bankruptcy exemptions. Exemptions are specific to where cases are filed and vary by state law. Exempt property can’t be taken from the filer.
Nonexempt property is not protected through Chapter 7 bankruptcy and can be taken by the trustee and sold to pay back your unsecured debt. If a bankruptcy filer wants to keep otherwise nonexempt property, they can usually pay the trustee the value of the property. This is generally an option because the creditors will ultimately get the same amount whether the nonexempt asset is sold by the trustee or is bought by the filer.
If You Do Have Nonexempt Assets
If the trustee is administering assets in your case – either by selling certain property for the benefit of your creditors or maybe by waiting for your non-exempt tax refund to come in – the case will stay open for however long it takes the trustee to complete the administration of your case. This process is very different in each case. If your trustee is requesting additional information or documents from you, either at your 341 meeting or later, make sure to provide everything to the trustee in a timely manner.
Even though you’ve already received your discharge, you continue to have a duty to cooperate with the trustee. This often means sending them a copy of your tax return for the year your case was filed in. Make sure you keep the trustee and the bankruptcy court up to date if your contact information changes and make sure to carefully review and, if necessary, respond to any correspondence you may receive from the trustee. Once the trustee files their final report with the court, the case will be closed.
Also Check: How To File Bankruptcy In Wisconsin