What is a 341 Meeting
A 341 meeting is related to bankruptcy filings, and is creditors' meeting that takes place when after individual files Chapter 7 bankruptcy. A 341 meeting, which takes place about a month after an individual files for bankruptcy, gets its name from section 341 of the bankruptcy code. A 341 meeting must include the individual filing bankruptcy and the Chapter 7 trustee, and it is optional for creditors or their attorneys to attend the meeting. If the individual filing for bankruptcy has a bankruptcy attorney, they would attend as well.
The purpose of a 341 meeting is to ensure that all bankruptcy paperwork is in order, to make sure the individual is not attempting bankruptcy fraud and to confirm the individual’s nonexempt assets that can be sold to repay creditors.
BREAKING DOWN 341 Meeting
A 341 meeting takes place after a trustee has already reviewed the individual’s bankruptcy paperwork and financial records.
At the meeting, individuals are required to prove their identity, assets and income with official documents.
The trustee will ask debtors about why they are filing for bankruptcy and about monthly expenses, assets, debts, marital status, dependents and other financial obligations such as child support and alimony. Creditors who attend the meeting can also ask the individual questions about loan collateral and the debtor's repayment intentions.
During these meetings, debtors attest that all of their assets have been identified and that all submitted bankruptcy documents are accurate. Debtors also have to answer questions about any money they might be entitled to in the near future because of tax refunds, pending lawsuits, being beneficiaries of estates, or because someone owes them a collectible debt.
Chapter 7 Bankruptcy and 341 Meetings
Chapter 7 bankruptcy is a type of consumer bankruptcy which stipulates the order in which debts must be paid. Unsecured priority debts, such as tax debts or child support, are paid first, followed by secured debts and then nonpriority, unsecured debts. Applicants have to fill out a petition to the court and several other forms to begin Chapter 7 proceedings.
In instances where individuals file for Chapter 7 bankruptcy, the Bankruptcy Court appoints an unbiased trustee to oversee the process. Trustees review the personal finances and assets of a debtor and determine what can be liquidated to pay creditors.
Chapter 7 debtors do not usually have to appear before a judge in court and 341 meetings are usually held at trustees offices.