Don’t Fear The Meeting Of Creditors
If you filed for bankruptcy, you may be worried about a mandatory meeting called the meeting of creditors. Some people are so afraid of this meeting that they delay filing bankruptcy because of it, lose sleep or make themselves sick over the prospect of the meeting. While you may envision a scene in which you are fending off attacks from angry creditors, the meeting of creditors is actually a relatively small hurdle on the path to regaining financial health.
What is a meeting of creditors?
The meeting of creditors (sometimes known as a Section 341 meeting) is a meeting held with your bankruptcy trustee. Your creditors have an opportunity to appear and ask you questions about the information contained in your bankruptcy papers. The purpose of the meeting is for you to confirm under oath that the information you provided in your bankruptcy petition is correct. It is not a hearing.
Who will come?
Although the meeting is called a meeting of creditors, creditors rarely show up, which is good news for you. Usually, the only people present are you, your attorney and the bankruptcy trustee. In most cases, no unsecured creditors, such as credit card companies, will appear. This is because appearing at the meeting will typically have no change on the status of a creditor in the case. A secured creditor may appear at the meeting, but even their appearance is rare. Rest assured that if creditors do come to the meeting, they aren’t allowed to be abusive — and you will also have your attorney there to protect you.
For these reasons, you can see that the meeting of creditors is nothing to fear and you will come through it just fine. Consult a knowledgeable Pennsylvania Chapter 7 bankruptcy attorney if you have any questions.