Your 341 "Meeting of Creditors"
Relax, Don’t Worry. One of our Bay Area Bankruptcy Lawyers Will Be There With You!
Perhaps no other aspect of the bankruptcy process causes our clients more apprehension than the Section 341 Meeting of Creditors. So here we would like to set things straight and dispel some myths about the "MOC" or "341 Meeting."
Each creditor listed in the schedules filed with a client's bankruptcy petition receives a notice generated by the Bankruptcy Court notifying the creditor of the date, time, and place of the meeting of the creditors. This does not mean, however, that creditors frequently attend this meeting. In fact, the vast majority of the most common types of creditors--credit card companies, mortgage lenders, auto lenders, and credit unions--almost never appear at the Meeting of Creditors.
Instead, the Meeting of Creditors is most often attended only by the debtor, the debtor's attorney, and the bankruptcy trustee. The purpose of the 341 meeting of the creditors is for the trustee to ask the debtor questions in person and under oath about the facts of the debtor's case. The trustee's job is to have the debtor verify the truthfulness of the information included in the debtor's bankruptcy petition and schedules, such as the dollar values provided for the debtor's assets (if any), the debtor's income and monthly expenses, and the like. The trustee will also inquire about certain types of past sales or transfers of property and other assets in order to determine whether the debtor may have made any "preferential" repayments of debts to family members, friends, or business associates. The trustee is also charged with determining whether the debtor has attempted to hide any valuable assets in preparation for filing bankruptcy. Because the great majority of bankruptcy debtors are honest folks without any non-exempt assets, however, the trustee at the 341 Meeting very rarely turns up any assets to seize, transfers to avoid, or misrepresentations by the debtor.
Because of this fact, most often the Meeting of Creditors lasts all of 5-10 minutes. That's right. The ominous sounding meeting of the creditors that causes our clients so much fear and apprehension typically is over after 5-10 minutes. We work hard to allay the fears of our clients by always appearing our clients are represented by one of our lawyers at the meeting and by meeting with the client before hand to describe the process, the types of questions that the trustee will ask them, and to make them feel comfortable that they know what the meeting will be like before they appear at the court house. Fear of the unknown is the cause of our clients' apprehension more than anything else, and we strive to shed light on the bankruptcy process from beginning to end.
One of the most satisfying moments for us in representing our clients, comes from walking out of the Meeting of Creditors with the client and seeing the visible weight lifted from his or her shoulders. Clients nearly always heave a large sigh of relief when the Meeting of Creditors is concluded, and frequently ask us, "Was that it? Is it over?" It's always a pleasure to inform the client, that, "yes, that was it."
To learn more about the Meeting of Creditors, you can view Bankruptcy Attorney Jon G. Brooks discussing the Meeting of Creditors here. To further discuss the Meeting of the Creditors and what else is involved in filing bankruptcy and in the bankruptcy process and to schedule a free consultation with one of our experienced bankruptcy lawyers at the Law Offices of Jon Brooks in San Jose, CA, please call us at 408.286.2766. Prior to our appointment, we ask that you download our Personal Bankruptcy Questionnaire, fill it out to the best of your ability, and bring it with you to our meeting.