Trustee Blog

Meeting of Creditors

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Today on Trustee Steven Speier’s meeting of creditors calendar a creditor appeared and started asking questions of the debtor. Trustee Speier had to stop the creditor after a while as the creditor started to ask questions that were not related to bankruptcy. Trustee Speier said that this was not a deposition and to ask the debtor questions related to the truth of the schedules and petitions filed and any assets that may have been or not been listed in the petition.

Below is 11 U.S.C. Section 341 of the Bankruptcy Code which explains what a meeting of creditors is for:

(a) Within a reasonable time after the order for relief in a case under this title, the United States trustee shall convene and preside at a meeting of creditors.

(b) The United States trustee may convene a meeting of any equity security holders.

The court may not preside at, and may not attend, any meeting under this section including any final meeting of creditors. Notwithstanding any local court rule, provision of a State constitution, any otherwise applicable nonbankruptcy law, or any other requirement that representation at the meeting of creditors under subsection (a) be by an attorney, a creditor holding a consumer debt or any representative of the creditor (which may include an entity or an employee of an entity and may be a representative for more than 1 creditor) shall be permitted to appear at and participate in the meeting of creditors in a case under chapter 7 or 13, either alone or in conjunction with an attorney for the creditor. Nothing in this subsection shall be construed to require any creditor to be represented by an attorney at any meeting of creditors.

Practice Pointer:

If you find yourself as a creditor in a case. Remember that the hearing is not a deposition, but a chance to ask the debtor about what he put in the petition and schedules and about assets. If you ask these questions, the trustee will be very interested in what you have to say. If you stray form those questions, the trustee will cut you off.

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