What Is a 341 Meeting?
The term "341 meeting" alludes to a meeting between creditors and debtors that is required to occur over the span of a Chapter 7 bankruptcy continuing. As needs be, its name is derived from section 341 of the bankruptcy code.
A 341 meeting is regularly scheduled about one month after a debtor seeks financial protection. To be viewed as legally substantial, the meeting must incorporate both the individual filing for bankruptcy and the court-designated bankruptcy trustee.
How 341 Meetings Work
The 341 meeting is one of many stages associated with defaulting on some loans in the United States. Its primary purpose is to lay out current realities of the bankruptcy being referred to, and to guarantee that all the administrative work important to carry out the bankruptcy procedures are all together. Albeit the lawyers of the debtor and creditor are free to join in, the main parties whose presence at the 341 meeting is legally required are the debtor being referred to and the court-delegated trustee.
Prior to the 341 meeting, the trustee would have proactively reviewed the bankruptcy administrative work and financial records presented by the debtor. The purpose of the 341 meeting, hence, is basically for the trustee to affirm the realities stated by the debtor and to collect any extra desk work that might be required. If the debtor is endeavoring bankruptcy fraud, this would almost certainly be recognized by the trustee during or prior to the 341 meeting.
According to the debtor's viewpoint, the objective of the 341 meeting is to give the important records to demonstrate that their identity is bona fide, while likewise laying out their current assets, liabilities, income, expenses, and other applicable financial conditions. On the off chance that the creditors are in attendance, they will actually want to ask explaining questions, for example, whether the debtor is qualified for any upcoming income sources, ie. tax rebates or inheritances, or whether the debtor possesses undisclosed assets, for example, shares in a private business or assets held overseas.
Ordinarily, discussion at 341 meetings will center on how the debtor plans to repay their obligations eventually.
Real World Example of a 341 Meeting
Peter is a bankruptcy trustee currently managing a 341 meeting. The debtor present declared bankruptcy more than a $5,000 debt, and has gone to the meeting alongside his bankruptcy legal counselor. Similarly, the creditor and her legal counselor are likewise present.
Peter's main goal is to confirm the identity and financial status of the debtor. In spite of the fact that Peter previously reviewed many records prior to the meeting, the 341 meeting gives an event to ask follow-up inquiries regarding the reports gave and to get any extra revelations considered significant. In the far-fetched event that the debtor were endeavoring bankruptcy fraud, this would likewise probable be recognized due to discrepancies or inadequacies in the records gave.
During the meeting, the legal counselors for the debtor and creditor participated in nitty gritty discussion with respect to the debtor's assets, liabilities, and income sources; and had the option to arrange a general plan for the slow repayment of the outstanding debt. Just like with most 341 meetings, the meeting occurred at Peter's office, as opposed to in court before a judge.
- Generally, 341 meetings happen at the offices of the trustee, as opposed to in a courtroom.
- A 341 meeting is an important stage in the Chapter 7 bankruptcy process.
- It is expected to lay out current realities of the bankruptcy being referred to and to work with the negotiation of a repayment plan between the debtor and their creditors.