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What is the meeting of creditors?

On Behalf of | Mar 20, 2019 | Chapter 7 Bankruptcy |

Once you start your Chapter 7 bankruptcy in Tennessee, you will learn a lot of new terms and vocabulary. Many of the processes will have legal terms or bankruptcy-specific language, and it is important that you understand what these things mean. One such phrase you will hear is the meeting of the creditors, which may also be called a 341 hearing, according to Bankrate.

A meeting of creditors is the part of your bankruptcy where your creditors have a chance to investigate and ask questions regarding your finances. Typically, during this meeting, you will be in a group of people who are filing bankruptcy. When it is your turn, your creditors will ask you questions. A trustee runs the meeting and may also ask you questions.

You should have all your documentation from your bankruptcy and about your finances with you during the meeting so you can properly answer any questions. The trustee and creditors may ask for copies of your documents.

This hearing generally happens about 21 to 40 days after you file. It is an essential part of the process because it gives your creditors a chance to learn more about your situation and formulate their plans for how to respond to your bankruptcy filing. Furthermore, since all communications from creditors are stopped once you file, it is the only real chance they have of getting information once the process begins.

Bankruptcy is designed to be as fair as possible to all parties, which the 341 hearing helps with. This information is for education and is not legal advice.