how 341 meetings work
the 341 meeting is one of many stages involved in declaring chapter 7 bankruptcy in the united states its primary purpose is to establish the facts of the bankruptcy in question and to ensure that all the paperwork necessary to carry out the bankruptcy proceedings is in order although the attorneys of the debtor and creditor are welcome to attend the only parties whose presence at the 341 meeting is legally required are the debtor in question and the court appointed bankruptcy trustee prior to the 341 meeting the trustee would have already reviewed the bankruptcy paperwork and financial records submitted by the debtor the purpose of the 341 meeting therefore is principally for the trustee to confirm the facts stated by the debtor and to collect any additional paperwork that may be required in the event that the debtor is attempting bankruptcy fraud this would likely be detected by the trustee during or prior to the 341 meeting from the debtor s perspective the objective of the 341 meeting is to provide the necessary documents in order to prove that their identity is authentic while also establishing their current assets liabilities income expenses and other relevant financial circumstances if the creditors are in attendance they will be able to ask clarifying questions such as whether the debtor is entitled to any upcoming income sources e g tax rebates or inheritances or owns undisclosed assets such as shares in a private business or assets held overseas typically discussion at 341 meetings will center on how the debtor plans to eventually repay their obligations real world example of a 341 meetingrobin is a bankruptcy trustee currently presiding over a 341 meeting the debtor present declared bankruptcy over a 5 000 debt and has attended the meeting along with their bankruptcy lawyer likewise the creditor and their lawyer are also present robin s first priority is to verify the identity and financial status of the debtor although robin already reviewed many documents prior to the meeting the 341 meeting provides an occasion to ask follow up questions about the documents provided and obtain any additional disclosures deemed necessary in the unlikely event that the debtor was attempting bankruptcy fraud this would also likely be detected due to discrepancies or inadequacies in the documents provided during the meeting the lawyers for the debtor and creditor engaged in a detailed conversation regarding the debtor s assets liabilities and income sources and they were able to negotiate a general plan for the gradual repayment of the outstanding debt as is the case with most 341 meetings the meeting took place at robin s office rather than in court before a judge declaring bankruptcy can help borrowers avoid the worst repercussions of failing to repay their debt but the impact on their credit score can be severe if you re struggling to pay back your loans consider working with a debt relief company or credit counseling agency before filing for bankruptcy becomes your only viable option 