The 341 Meeting in Arizona Bankruptcy Court - Yes, You Have To Go, But It's Not As Scary As You Think!

PHOENIX, AZ, April 27, 2011

What is a 341 Meeting? Named for the section in which it's housed in the Bankruptcy code, a 341 meeting, also called the meeting of creditors, is an opportunity for the bankruptcy trustee to ask you about your bankruptcy filing as well as for any of your creditors to come forward and object to your request for relief. That may sound scary, but keep reading: it's not as bad as you think!

The 341 meeting may be the only hearing that you will have related to your Arizona Chapter 7 bankruptcy. There is no need to worry or be anxious about this meeting; the bankruptcy trustee will be asking specific questions about you, your finances and your bankruptcy paperwork, but that's pretty much it.

What do I need to bring? Two forms of identification. Absolutely, no doubt about it, you must bring two forms of ID. Preferably, these should be your driver's license and your Social Security card. If you are filing jointly with your spouse, each of you will need your own two forms of identification. If your attorney has advised you to bring any additional information or paperwork (and your attorney probably has), be sure to bring that with you as well.

Will I be in a courtroom? Generally no, courtrooms are not used for the 341 meeting of creditors. You will be in a conference-style room with everyone else who has a meeting of creditors at that time. But, you will be at the courthouse. This means that you will have to pass through security and a metal detector to enter the building. This may take an extra few minutes, so plan to arrive a bit early to allow time. Your meeting of creditors is not a good occasion to be late.

Will all of my creditors be at this meeting? While that's possible, it's very unlikely. Usually no creditors actually come to these meetings. The people that you will see at your 341 meeting will be you (the debtor), your attorney, the bankruptcy trustee and any other bankruptcy debtors scheduled for a 341 meeting that day. Savvy creditors know that bankruptcy is a right - and debtors can discharge most or all unsecured debt - so most creditors will not appear at the meeting unless it's in their best interests to do so.

What about privacy? You will not be the only person in the room for your 341 hearing. Because many other people are also seeking bankruptcy relief in Arizona, the trustee will likely have multiple 341 meetings with other bankruptcy filers both before and after yours. The good news is that this generally means your hearing will take about five minutes; the trustee has a lot of files to get through in a short amount of time. Do not feel embarrassed. Everyone at the 341 meeting is either there for the same reason you are - because they are filing for bankruptcy relief - or they are an attorney or creditor.

Can't my lawyer just handle this for me? No, the bankruptcy trustee will be speaking directly to you about your bankruptcy case and about your knowledge of your financial situation.
Will I be sworn to tell the truth? Yes, prior to answering any questions, you will be put under oath, which means that you are promising to tell the truth. This may happen individually, as your case comes up, or it may be done as a large group with everyone else scheduled for a 341 meeting with the trustee that day. You will also be advised that there are severe penalties for failing to disclose substantial assets.

But don't they have all the information in my bankruptcy petition? What more information do they need? The questions from the trustee shouldn't be anything new if you have fully and truthfully discussed your finances with your attorney during the preparation of your bankruptcy filing. The trustee's job is to protect your creditors; he or she will ask questions to confirm that you don't have assets that could be used to pay off your creditors other than what you've already disclosed. Typical questions relate to:

1. Questions about you, the filer: The trustee will ask for your identification as well as confirm that your address is correct on your bankruptcy petition. You will be advised that you must tell the court if you move while your bankruptcy is still open, as you must update the bankruptcy court on any address changes during this time.

2. Questions about where you live: the trustee will confirm that the Arizona bankruptcy court is the right place for your Chapter 7 bankruptcy request by asking questions about where you live and how long you have lived there. Eligibility to file bankruptcy in Arizona and to take advantage of the Arizona exemption structure requires that you have lived in Arizona for a certain amount of time.

3. Questions about the bankruptcy information sheet: The trustee will confirm that you actually read the information sheet and that you understood the information therein. If not, he or she will postpone your hearing to a later date to give you time to read and understand the information. If your hearing is postponed or, in legal terms, 'continued,' the date of discharge for your bankruptcy will be delayed. Your bankruptcy attorney can answer your questions about the information prior to your 341 hearing.

4. Questions about your bankruptcy paperwork: The trustee will ask if you signed the bankruptcy petition and whether it is true, correct and complete, to the best of your knowledge. He or she will also ask about your assets and debts, including any expected tax returns, recent gifts or transfers of property that you have made as well as any expected inheritance.
What should I remember on the day of my 341 meeting?

- Be on time!
- Bring two forms of identification and any additional materials your lawyer has advised you to bring.
- Be prepared to answer direct questions about your finances from the trustee.
- Tell the truth.
- Take a few deep breaths and relax; the meeting will be over before you know it.

The meeting is over. Now what? The bankruptcy judge will review your request for Chapter 7 bankruptcy relief to determine whether the debts related to your filing will be discharged. When your bankruptcy filing is approved, you will receive a certificate of discharge from the court. An experienced Arizona bankruptcy attorney can further explain the Arizona Chapter 7 bankruptcy process to you as well as answer any additional questions that you may have about the 341 meeting of creditors.

Website: http://www.josephmcdaniel.com