One 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:
- 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.
- 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.
- 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.