Steps in a Bankruptcy
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After your bankruptcy petition is filed, the bankruptcy court sends a notice to all the creditors listed on your bankruptcy creditor’s matrix (people/companies you owe money to with their complete addresses.) This notice is generally mailed out 5 days after you file your bankruptcy petition.
If you owe any secured creditors (mortgage company, automobiles, furniture stores, etc) you are required to notify them of your bankruptcy filing yourself. This is done by making a copy of the Certificate of Service and Statement of Intentions (two legal papers included in your bankruptcy petition) and mailing them to the creditor. You are required by law to notify these “secure” creditors right after filing your petition, hopefully even before the Bankruptcy Court notifies them through the normal process.
The Bankruptcy Court will also mail you a notice informing you that you are eligible to file bankruptcy and what documents to bring with you to your 341 Meeting of Creditors. Do not become confused when you receive this notice. You don’t have to do anything but keep it in your personal file and wait on the notice that tells you the date and time of your first hearing with the Trustee (see below.)
The Bankruptcy Court will send all your creditors and you, a notice informing you of the hearing date when you should appear in court. This hearing is often referred to as the “Meeting of Creditors” or “341 Meeting.”
At your Meeting of Creditors a judge is normally never present. Instead, the Trustee will review your bankruptcy petition and ask you specific questions about it. You may be asked to provide him/her with copies of your tax returns, bank statements, pay check stubs, titles to motor vehicles, an appraisal of your home (if you own one) along with a recorded mortgage and deed; or the Trustee may be satisfied with your detailed bankruptcy petition and not request anything at all. That decision is up to the particular Trustee your case is assigned to as well as the accuracy and detail of your petition.
In most “no asset” cases, creditors rarely appear at these hearings; however, a representative from one of the companies you owe, or a person you owe, may show up at this meeting. They normally only make an appearance to ask where the secure item is and if it is insured. Normally, their conversation is with the Trustee only, but be prepared to answer their questions if necessary.
Note: A “no asset” case means that you have no money left in your approved monthly budget to distribute among your creditors. Since there is nothing for an unsecured creditor to take, they would rather write off the debt versus spending time appearing in court and not get anything anyway. Normally, the only creditors who appear at the 341 Meeting of Creditors are secure creditors who have a secured interest in your real or personal property.
If your bankruptcy petition is detailed and provides all the information the Trustee requires, this meeting (hearing) will normally only last 5-10 minutes. Remember, you are not going to court because you committed a crime and have to appear in front of a judge. Filing for bankruptcy was a “voluntary” choice you made. You have committed no crime unless you fraudulently attempt some criminal act such as hiding your assets, committed tax fraud, etc. In this case, the Trustee would notify the proper authorities. Therefore, make sure you reveal every debt and asset in your bankruptcy petition or you could be answering possible fraud charges.
