What is a creditors’ meeting?

A Creditors’ Meeting, commonly referred to as a “341 Meeting” in California, is part of the Federal Bankruptcy Code’s “means test.” A creditors’ meeting is held by the bankruptcy trustee to ensure that the debtor has disclosed all of their assets and liabilities and to determine the debtor’s ability to pay back creditors. During this meeting, the debtor is required to answer questions under oath posed by the trustee and creditors, if they are present. The questions usually involve topics such as the debtor’s income, expenses and assets. In California, creditors have the right to attend the 341 meeting, but they are not required to do so. Creditors are not allowed to speak at the hearing, but they can submit a written statement to the court or trustee. At the end of the meeting, the trustee will typically ask the debtor to sign a statement of facts to confirm that all of the information provided is true and accurate. After the creditors’ meeting, the bankruptcy trustee will submit a report to the court which includes a recommendation for the debtor. From there, the court will decide whether to approve or deny the debtor’s bankruptcy petition. Creditors’ rights must be duly considered during the process and creditors may object to the trustee’s recommendation if they believe their rights are not being respected. In any case, it is important to consult an experienced bankruptcy attorney to protect creditors rights.

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