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What happens at a meeting of creditors?

On Behalf of | Mar 17, 2022 | Chapter 7 Bankruptcy

Many people in Florida and throughout the U.S. struggle with overdue bills, medical expenses, credit card debt and other loan payments. Chapter 7 bankruptcy is an option for those who wish to start over with a clean financial slate.

Otherwise known as liquidation bankruptcy, Chapter 7 allows you to discharge certain debts and releases you from financial obligations, according to the U.S. Courts. After filing for Chapter 7, you must schedule and attend a meeting of creditors, which usually takes place 21 to 40 days after submitting your paperwork. Not only is it important to know what this meeting is, but how to prepare for it.

What is a meeting of creditors?

During the meeting of creditors, the trustee presiding over the case looks over your financial situation and asks questions to ensure you understand the bankruptcy process. They will also help determine whether filing for Chapter 7 bankruptcy is the best option for you. It is important to answer all questions thoroughly and honestly.

When you file your bankruptcy papers, the court notifies the creditors listed and invites them to attend the meeting. At this time, creditors can ask questions regarding your debt and may ask to repossess property to help pay for the money owed to them.

If you wish to reaffirm a loan or property, such as a mortgage or car payment, the trustee will let you know your options as well.

What you should know?

Before attending the meeting, make sure you have your bankruptcy papers and two forms of identification ready to present to the trustee. The trustee may ask you to provide additional paperwork and will give you a deadline to provide it. At the meeting, you may also choose to reaffirm unsecured debt, such as a mortgage or car loan. This means you reassume making the loan payments in order to keep the property.

Ask the trustee any questions you may have and they will help you make the decision that is best for your unique situation.

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