What you need to know about the 341 Meeting of Creditors

For most of my clients who file for bankruptcy, the 341 Meeting of Creditors is the one thing they must do.  They never see the Judge appointed to their case, and they don’t want to!  They only meet the Chapter 7 or Chapter 13 Trustee.  The appearance at the 341 is not a court appearance.  Where the 341 takes places depends on which division you file in.  If you are in the London Division, you are going to Corbin in the old municipal building.  In Lexington, you will attend at the Community Trust Bank building downtown (I know, I know – Lexington traffic is no good).

The 341 Meeting is not the end of the world and should not be thought of in horror.  You should be prepared and have a general idea of what takes place and what will be asked, but it is not the worst thing you will go through.  Not even close.  Before your 341 Meeting, here are some things you should do:

  1. Be familiar with your petition:  You should have reviewed and signed the petition with your attorney and should know what is in it.  But you should also know the answers to some of the questions that will be asked.  For example, one of the most common questions is:  “You valued your home at $100,000.  How did you come up with that value?”  Tell the Trustee how that value was reached.  They are looking to see if it is worth anymore, should they be interested in it, can they sell it and make more than what you have listed in order to pay your creditors…Know where the numbers come from!
  2. Have everything you need:  Driver’s License, Social Security card, proof of insurance, recent paystubs, recent bank statements and anything else your attorney asked you to bring

Contrary to its name, creditors rarely show up to the 341 Meeting of Creditors.  They certainly can (I mean, it is called the 341 Meeting of Creditors) but they usually don’t.  It has been my experience that a creditor for a vehicle and a home may show up to ask if you intend to keep the home, do you have insurance, are you going to sign a reaffirmation agreement.  Ex-spouse’s also may show up, especially if child support is owed, just to make sure that you can’t get rid of the back owed child support or the ongoing child support, or other domestic support obligation (you can’t – don’t ask me).

So just be prepared to answer any questions the Trustee or a creditor may ask and remember, if you get nervous or have any questions, always contact your attorney or someone in their office.