A meeting of creditors is not as simple as it may sound. In most Chapter 7 and 13 bankruptcy petitions, a debtor is required to attend a meeting of creditors where they are questioned about their financial situation. This can be a rather intimidating experience – however, it needn’t be if you have an understanding of the meeting’s intentions. You are required to attend this meeting.

If you are filing for bankruptcy under Chapter 7, the meeting will try to determine all non-exempt assets. These will be sold to pay off as much of the debt as possible.

For a Chapter 13 filing, the creditors meeting will try to determine your actual disposable income – this is the income that remains after paying off essentials.

In both cases, the questioning of the debtor is done by the Trustee who has been appointed to supervise the bankruptcy filing. Their role is to act in all fairness to both sides. This means determining all fair assets to seize, for example, while leaving you with property that you are entitled to keep.

Some of the questions you may be asked include:

  • Have you made any transfers of any property or given any property away within the last one year period (or such longer period as applicable under state law)?
  • Are there any errors or omissions that need to be added to your submission?
  • Have you listed all of your creditors?
  • Are you entitled to the proceeds of any life insurance claim or inheritance as a result of a death?
  • Are you owed any money? If so, can it be collected?
  • Do you own or have an interest in any real estate?

These are examples and, depending on your answers, may require follow-up questions. The process is one of determining all the information required to ensure your application for bankruptcy is dealt with fairly to all parties. If you have any concerns over a bankruptcy application, seek professional legal advice.

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