There are many steps and requirements to the bankruptcy process in Maryland. One of these is appearing in court for a meeting of creditors.
A meeting of creditors, sometimes called a 341 hearing, is generally held between four to six weeks after you file for bankruptcy. The meeting typically takes place at a bankruptcy court.
However, it is not a formal court proceeding and does not usually occur in a courtroom. Rather, it is a meeting held in a conference or hearing room with a bankruptcy trustee. You will be sworn in and asked to answer a series of questions under oath.
Questions a trustee may ask
The trustee will ask you questions about your bankruptcy and might ask you to provide some additional documentation. Common questions the trustee may ask include asking if the information you submitted is accurate and if you are aware of the consequences of filing for bankruptcy.
Additionally, the trustee may ask questions about your overall financial situation, such as if you owe any alimony or child support, if you have filed all your tax returns or if you transferred any property out of your name within the past two years.
The purpose of these questions is to verify the accuracy of your filing and information and look for signs of bankruptcy fraud. The trustee’s goal is to ensure that your creditors are paid as much as possible.
Preparing for the bankruptcy hearing
You can prepare for the hearing by reviewing your bankruptcy petition carefully and checking for any mistakes or inaccuracies. If you find any, you can expect to be asked about them at the hearing.
If you find any inaccuracies, you may potentially be able to file an amended petition before the hearing. Otherwise, it is best to bring it to the trustee’s attention at the hearing before you are asked to avoid the appearance that you are hiding something.
Since you will likely have provided all required documents to the trustee before the hearing, you should not need to bring these documents to the hearing.
However, you should bring a photo identification, your social security card and any documents that show a change in your financial circumstances since you filed for bankruptcy. If you are unsure if you should bring any other documents, ask the trustee prior to the hearing.
As the name implies, creditors are also invited to attend this meeting, but this does not always happen. Creditors generally only attend if they have questions about your current financial situation or if there are discrepancies between what you put on a credit application and your bankruptcy paperwork.
Do not forget about logistics
Make sure you know the location of the courthouse the meeting will be held at and how to get there. Learn where to park and how to get to the correct meeting room. Give yourself more time than you believe you will need to get there to avoid additional stress.
You may be nervous about attending this meeting and that is understandable. It helps to have someone guide you along the way and to help you prepare so you know what to expect.
Ideally, the meeting will go quickly and smoothly so you can continue through the bankruptcy process, allowing you to make a fresh start.