What Is a Section 341 Meeting of Creditors?

A Section 341 meeting of creditors is a mandatory hearing in nearly all bankruptcy cases. It is named after the corresponding section of the U.S. Bankruptcy Code, which requires a debtor to appear and be questioned under oath. The meeting takes place between 21 and 40 days after the initial bankruptcy petition is filed. Its primary purpose is to allow the court-appointed bankruptcy trustee and any interested creditors to question the debtor about their financial affairs.

The questioning focuses on the information provided in the bankruptcy petition and its accompanying schedules. This is an opportunity for the trustee to verify the accuracy of the submitted documents and inquire about the debtor’s property, debts, and financial condition. A judge is not present at this meeting; it is conducted by the trustee. While creditors are notified and have the right to attend, their attendance is infrequent in consumer cases.

Preparing for the Meeting of Creditors

A debtor must be ready to present specific identification documents to the trustee. These include a government-issued photo identification, such as a driver’s license or passport, and proof of a Social Security number, like an original Social Security card or a W-2 form. Failure to provide these exact documents can result in the meeting being postponed, delaying the entire bankruptcy case.

It is also important for the debtor to have copies of key financial documents available for reference, including the most recently filed federal income tax return, recent pay stubs, and bank statements. A significant preparatory step is a detailed review of the bankruptcy petition and all associated schedules before the meeting, as the trustee’s questions are based on these filings. This includes reviewing:

• Schedule A/B for a list of all property
• Schedules D, E, and F for secured and unsecured debts
• Schedule I for current income
• Schedule J for monthly expenses

Being familiar with this information allows the debtor to confirm its accuracy under oath.

The Meeting Procedure

The 341 meeting is a formal proceeding, often held via teleconference or video conference. The primary participants are the debtor, their attorney, and the bankruptcy trustee. The proceeding is recorded, and the debtor is placed under oath.

The trustee begins by verifying the debtor’s identity with their photo ID and Social Security documentation. The trustee then asks standard questions to confirm the debtor has reviewed, signed, and attests to the accuracy of their bankruptcy petition.

The trustee will then ask specific questions based on the bankruptcy paperwork. Common questions concern asset valuations, vehicle status, and bank account balances on the filing date, as well as liabilities, income, and expenses. A significant area of focus is recent financial activity, including large payments to creditors or property transfers.

Post-Meeting Steps and Requirements

Once the trustee concludes their questioning, they file a report with the court stating that the meeting was held. This action starts a 60-day clock for creditors in a Chapter 7 case to file an objection to the discharge of a specific debt or the debtor’s overall bankruptcy discharge.

If no objections are filed, the case moves toward its conclusion. However, the debtor must complete a debtor education course, also known as a personal financial management course. This course is separate from the credit counseling required before filing.

The certificate of completion for this course must be filed with the court. In a Chapter 7 case, the deadline to file this certificate is 60 days after the first date set for the 341 meeting. Once the objection deadline has passed and the certificate is on file, the court will issue the discharge order, eliminating the debtor’s personal liability for dischargeable debts. The case is then closed.