After a bankruptcy petition is filed, the court will schedule a 341 hearing or what is commonly known as a meeting of the creditors. The meeting is conducted by a bankruptcy trustee and gives the trustee and others a chance to ask questions about the debtor’s financial affairs. The meeting can last anywhere from a few minutes to an hour with the debtor’s responses being recorded and under oath. The primary focus of the questions depends on whether the bankruptcy petition was filed under Chapter 7 or Chapter 13. In a Chapter 7 case, the trustee focuses on whether the debtor has fully disclosed all income and assets, and whether any nonexempt assets exist that may be liquidated. In a Chapter 13 case, the focus is on whether the debtor’s repayment plan is feasible. Although creditors are advised of the hearing, in reality few creditors appear at the 341 hearing in consumer bankruptcy cases unless the debtor has nonexempt assets that can be liquidated to cover existing debt. Just because creditors typically do not appear does not guarantee they will not appear in your case. The key to being prepared for the meeting with the trustee is to review the bankruptcy petition and documents that have been filed in the case. In the end, the length of the 341 hearing will likely depend on how quickly and concisely the debtor can answer the trustee’s questions.

- Richard V. Stokan, Jr.