The 341 (Creditors’) Meeting

The 341 meeting, named for the Bankruptcy Code section that regulates it, is a meeting with you, your lawyer, your creditors, and the appointed bankruptcy trustee. This meeting occurs approximately thirty days after filing your bankruptcy petition with the court.

Your Financial Information Reviewed

The bankruptcy trustee will usually take 15 to 30 minutes to review your financial information. At the 341 meeting the trustee will ask you some of these questions under oath:

• about your exempt and nonexempt assets
• whether you understand other options available to you
• reaffirmation of debt

Reaffirmation of Debt

This involves reaffirming certain assets you intend to keep, such as homes or vehicles. The benefit of claiming your assets is that you get to keep them, also continued good payment history will help your credit report. Credit card debt or medical bills is the main reason most people file bankruptcy; often times they are current or relatively current on their mortgage and car loans.

Ineligible for Discharge

Depending on the amount of equity you have in your home and vehicles, reaffirmation may not be your best option. The debt you list for reaffirmation results in a mandatory repayment of that loan, even if you default on the loan. This debt will survive your bankruptcy and be ineligible for discharge.

Talk to a qualified Houston bankruptcy attorney to clear up any confusion about the creditors meeting. Having an attorney represent you in the bankruptcy proceedings can give you peace of mind knowing they have attended these meetings many times before and can anticipate the probable outcomes.