Will I Have to Go to Court?

Approximately a month after filing, the Trustee will conduct a “first meeting of creditors”, which the debtor must attend.  This proceeding is also referred to as the “§341 meeting”, named after the corresponding section of the bankruptcy code.  Creditors rarely attend a Chapter 7 bankruptcy meeting although they have a right to; one or two creditors may attend a Chapter 13 meeting, especially if there is a question as to the legitimacy of some aspect of the plan.  Objections are typically resolved by negotiation between the debtor or the debtor’s attorney and the creditor. If a compromise can not be reached, a judge will intervene.

The meeting of creditors typically lasts about five minutes.  The Trustee will have reviewed you bankruptcy paperwork and will normally have a few basic questions for you such as “Did you list all your creditors?”  You will receive notice of the location of the meeting but you may contact the court to confirm the address and time.  Most Chapter 7 filings involve no non-exempt assets, however, if you filed for Chapter 7 and do have non-exempt assets, you will have to turn over non-exempt property (or its fair market value in cash) to the Trustee after the meeting.  The Trustee will sell this property and distribute the proceeds to your creditors.  If the property isn’t worth a great deal or would be hard to sell, the Trustee may decide to abandon the property (and return it to you).  Trustees and creditors have 60 days from the date of the §341 meeting to challenge the debtor’s right to a discharge.  If there are no challenges, you will receive a notice from the court that your dischargeable debts have been discharged within roughly three to six months.

Occasionally, if complications arise, or if you choose to dispute a debt, you may have to appear before a judge at a hearing.  If you need to go to court, you will receive notice of the court date and time from the court and/or from your attorney.