Everything About 341 Meetings: What Happens When Creditors Attend A 341 Meeting


So I want to talk today about what happens when creditors attend a 341 meeting. Hi, I’m Mike Ziegler, Managing Attorney for the Debt Fighters. We’re a law firm in Clearwater, Florida focusing and helping consumers overcome debt problems. We serve people throughout Tampa Bay and beyond.

For most bankruptcy filers, the 341 meeting is the most intimidating part of the process. It’s where they have to appear in person and provide a testimony to confirm what happens in their bankruptcy case. Most folks that we’ve worked with have never had any exposure to any sort of court hearing, so a few things to remember. Number one, the 341 meeting doesn’t happen in the court room. It’s going to be a relatively less formal meeting room. Now, the testimony that you’re giving is under oath, so of course, it’s important that you give your testimony as accurately as you can. But again, you’re not before a judge, you can be before the trustee, and you’re not going to be in a formal court room.

Now, in most consumer cases, creditors don’t attend the 341 meeting, even though it’s called the meeting of creditors. In probably 95, if not 98% of cases, no creditors actually attend. It’s only going to be the trustee that will be asked some questions to verify your financial situation. Now, in those rare instances where creditors do attend, there’s two different types of scenarios. There’s creditors that are there on behalf of usually more institutional creditors, the ones that you hear about on every corner at the bank of such and such or so and so credit card. In those instances, the creditor’s attorney is attending just as part of their procedure for reviewing a bankruptcy case, but they aren’t as emotionally invested in trying to elicit information.

Where creditor involvement can get more complicated is where you have a smaller creditors or even individuals, who for whatever reason, may have some sort of obligation. And a lot of times are locked into more contentious litigation leading up to the bankruptcy, and may have indeed caused the bankruptcy all together. Now, in those situation, the creditors may be more involved. They have a right to ask certain amounts of questions. Now generally, the questioning in a 341 meeting, shouldn’t be too extensive. If a creditor has a desire to request a more thorough amount of information, there can be a supplemental meeting. That’s usually called the 2004 examination that may take place.

In most instances, not that there’s never an exception to this rule, but usually the questioning at 341 meeting isn’t too extensive. Where you might expect more extensive questioning is a filer that either is themselves a small business, so the LLC or corporation has filed for bankruptcy or the owner of a similarly situated business. That’s where it’s most likely to see more complex creditor involvement. If you’re concerned that you may have more complex case, please feel welcome to click our Calendly link. We’re happy to consult with Florida residents about their expectations for bankruptcy cases and 30 minute consultation is complimentary.

Are you a Florida resident that has questions about your prospective bankruptcy? Are you questioning whether bankruptcy is even the right option for you? Our goal is to take a strategic approach to that problem solving. What makes us different is that we aren’t just bankruptcy attorneys, but we look holistically at bankruptcy, debt consolidation, debt litigation, and other alternatives. Click on the Calendly link below to schedule a complimentary 30 minute consultation. And let’s see if we can develop a strategy that’s in your best interest.

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