Why Bankruptcy Debtors Should Not Fear 341 Hearings

June 30th, 2010 by Reed Allmand

Why You Should Not Fear 341 HearingsOne of the biggest fears that debtors filing bankruptcy have is attending the 341 Hearing or what is better known as the meeting of the creditors.  Many debtors imagine that their creditors will crowd into this meeting and grill them with questions about their finances and willingness to repay their debts.  But the reality of much farther from what debtors imagine will happen.  Below are a few reasons why bankruptcy debtors have no reason to fear this meeting:

  1. Creditors rarely show.  That’s right, while some creditors do come to the 341 meeting; the vast majority of them are a no show. In most Chapter 7 bankruptcy cases, the debtor can rest assured that their creditors will not be there.
  2. The 341 hearing is very short.  In most Chapter 7 bankruptcy cases, there are so many debtors lined up to have their 341 hearing that the bankruptcy trustee can only spend about five minutes on each case.  Even if the creditor did have objections or questions about the debtor’s finances, he/she may not have enough time to voice them all during the 341 meeting.
  3. While many times creditors will not show up to the 341 hearing, when they do it is usually to check if the debtor has the proper insurance on a secured property such as vehicle.  If they do not have the insurance needed, the creditor can request action from the bankruptcy trustee, such as forcing the debtor to hand over the keys and store their vehicle until they do have insurance.

avatar

About Reed Allmand

Website

Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."

View all posts by Reed Allmand

Subscribe

Subscribe to our e-mail newsletter to receive updates.

FAQ

Why do I need to submit a new wage order when I modify my plan

When we modify your bankruptcy plan we are changing your plan payments. This means that we have to get with your employer and change the terms and amount of your wage order. The only way we can do that is by filling out a new wage order form.  

Learn More
What happens if the stay terminates on my home?

If the bankruptcy stay terminates on your home that means that even though your in bankruptcy, your creditor can pursue all there legal remedies they can pursue if you were not in bankruptcy. This includes foreclosure, and having your house sold and evicting you from your house.

Learn More

Find Location

map
  • Dallas Bankruptcy

    5646 Milton Street, Ste. 120 Dallas, Texas 75206
  • Fort Worth Bankruptcy

    860 Airport Freeway, Suite 401, Hurst, Texas 76054
  • More Locations

Meet Our Clients