DEFINITION of '341 Meeting'

The meeting of creditors that occurs when an individual files chapter 7 bankruptcy. A 341 meeting gets its name from section 341 of the bankruptcy code. This meeting must include the individual filing bankruptcy and the chapter 7 trustee. It is optional for creditors or their attorneys to attend, and they usually don’t. If the individual has a bankruptcy attorney, the attorney should attend the meeting as well.

BREAKING DOWN '341 Meeting'

A 341 meeting’s purpose is to ensure that all bankruptcy paperwork is in order, make sure the individual is not attempting bankruptcy fraud, and confirm the invidual’s nonexempt assets that can be sold to repay creditors. This meeting occurs about a month after the individual files for bankruptcy. Before the meeting, the trustee will have already reviewed the individual’s bankruptcy paperwork and financial records. At the meeting, the individual will need to prove his or her identity, assets and income with official documents including a driver’s license, Social Security card, property deeds, mortgage paperwork, car titles, bank statements, tax returns and pay stubs.

The trustee will ask the debtor a number of questions about why he or she is filing for bankruptcy and about monthly expenses, assets, debts, marital status, dependents and other financial obligations such as child support or alimony. Any creditors who attend may also ask the individual questions about any loan collateral, its condition and the individual’s repayment intentions. A 341 meeting is usually held at the trustee’s office; chapter 7 debtors do not usually have to appear before a judge in court.

During the meeting, the debtor attests that all of his or her assets have been identified and that all submitted bankruptcy documents are accurate. The debtor will also answer questions about any money he might be entitled to in the near future because of a tax refund, because he is the plaintiff in a pending lawsuit, because he is the beneficiary of an estate, or because someone owes him a collectible debt. If the debtor owns a business, the bankruptcy trustee will also ask detailed questions about the business’s assets, liabilities and operations.

RELATED TERMS
  1. Bankruptcy Trustee

    A person appointed by the United States Trustee, an officer of ...
  2. Bankruptcy

    A legal proceeding involving a person or business that is unable ...
  3. Chapter 11

    Named after the U.S. bankruptcy code 11, Chapter 11 is a form ...
  4. Voluntary Bankruptcy

    A type of bankruptcy where an insolvent debtor brings the petition ...
  5. Chapter 10

    Chapter 10 was a type of corporate bankruptcy filing that was ...
  6. Bankruptcy Abuse Prevention And ...

    Legislation enacted by President George W. Bush in 2005 that ...
Related Articles
  1. Taxes

    When To Declare Bankruptcy

    When is bankruptcy the best or only route– and when is it better to look at alternative solutions? And should you always hire a lawyer?
  2. Personal Finance

    Should You File for Bankruptcy?

    Find out how to determine whether bankruptcy will help or hurt your financial situation.
  3. Personal Finance

    What You Need To Know About Bankruptcy

    Don't choose this last-resort option until you learn how it will affect your future.
  4. Small Business

    Taking Advantage Of Corporate Decline

    A bankrupt company can provide great opportunities for savvy investors.
  5. Taxes

    How To Survive Bankruptcy

    Bankruptcy is not the end of the world. You can survive it and come out on the other side more financially solid.
  6. Financial Advisor

    Bankruptcy Protection For Your Accounts

    Will the plan assets you've worked hard for be safe if you experience a personal financial crisis?
  7. Personal Finance

    Millionaires With The Most Bankruptcies

    These celebrities made a lot and lost a lot - sometimes several times over. Find out who they are.
  8. Investing

    5 Energy Companies Crushed by Low Oil in 2016

    Oil companies globally are at risk of slipping into bankruptcy, and many of these businesses could disappear, leaving the sector worse off than in 2008.
  9. Small Business

    The 5 Biggest Oil Bankruptcies of All Time (CVX, OGXP3.SA)

    Learn about the five largest bankruptcies in the oil industry. With oil prices in a slump and a global oversupply of oil, more bankruptcies loom on the horizon.
  10. Managing Wealth

    Benefit Issues When Your Employer Goes Bankrupt

    There are some safeguards in place to ensure that health benefits don't just disappear when a plan is canceled.
RELATED FAQS
  1. Can personal loans be included in bankruptcy?

    Read about debts that are dischargeable when filing for bankruptcy. Learn about how personal loans are treated when filing ... Read Answer >>
  2. What effect did the Bankruptcy Abuse Prevention and Consumer Protection Act of 2 ...

    Credit card companies and banks hate deadbeats who take from their bottom lines. They especially dislike the Chapter 7 bankruptcy ... Read Answer >>
  3. What are the differences between Chapter 11 and Chapter 13 bankruptcy?

    Discover the differences, including respective advantages and disadvantages, between Chapter 11 bankruptcy and Chapter 13 ... Read Answer >>
  4. What happens to the shares of a company that has been liquidated?

    Learn what happens to a company's shares during Chapter 11 and Chapter 7 bankruptcy proceedings, and understand how much ... Read Answer >>
Hot Definitions
  1. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs are often issued by companies seeking the capital to expand ...
  2. Cost of Goods Sold - COGS

    Cost of goods sold (COGS) is the direct costs attributable to the production of the goods sold in a company.
  3. Profit and Loss Statement (P&L)

    A financial statement that summarizes the revenues, costs and expenses incurred during a specified period of time, usually ...
  4. Monte Carlo Simulation

    Monte Carlo simulations are used to model the probability of different outcomes in a process that cannot easily be predicted ...
  5. Price Elasticity of Demand

    Price elasticity of demand is a measure of the change in the quantity demanded or purchased of a product in relation to its ...
  6. Sharpe Ratio

    The Sharpe ratio is the average return earned in excess of the risk-free rate per unit of volatility or total risk.
Trading Center