For many people, filing for Chapter 7 bankruptcy is the only way to get their finances back in order. What many people fail to realize before filing is that the oncoming proceedings are a lot more complicated than they expect. For example, many fail to realize there is a meeting of creditors they must attend.
The meeting of creditors is an opportunity for a person’s various creditors to attend an appointment to ask the debtor various questions. The creditors want to ensure the debtor understands the magnitude of filing for bankruptcy and ensure he or she has prepared. It is a normal part of the process, and those seeking bankruptcy should prepare themselves accordingly.
When does this meeting take place?
The meeting of creditors occurs between 21 and 40 days from when the debtor files the Chapter 7 petition. For some people, this meeting may not occur until 60 days after filing the petition, but this only occurs if the meeting is in a location where there is no regular bankruptcy administrator or trustee.
What happens at this meeting?
The debtor must go under oath for this meeting and answer all questions truthfully. The creditors will ask questions related to the various debts. The debtor, regardless of if it is an individual or married couple, must attend the meeting. There have been cases where creditors failed to show up to the meeting. This will not affect the debtor’s bankruptcy case.
What happens after the meeting?
Afterward, the trustee has 10 days to determine whether the bankruptcy case is legitimate. This may also include applying a means test to the debtor to ensure bankruptcy is truly the best option. Although the meeting of creditors sounds intimidating, most people find it is relatively easy to get through. It is merely one step in the long process of filing for bankruptcy and getting your finances back on track.