Blogs

The meeting of creditors in your bankruptcy case goes faster when you know the questions you may be asked.
These questions are largely standard, and many are required by the U.S. Department of Justice.
The purpose of these questions is to ensure that you’ve properly listed all of your assets, debts, and financial circumstances.
Here are the bankruptcy creditors meeting questions that are listed in the Handbook for Chapter 7 Trustees.

Required Questions At The Bankruptcy Creditors Meeting

1. State your name, social security number, and current address for the record.
2. Have you read the Bankruptcy Information Sheet provided by the United States Trustee?
3. Did you sign the petition, schedules, statements, and related documents you filed with the court?
4. Did you read the petition, schedules, statements, and related documents before you signed them?
5. Are you personally familiar with the information contained in the petition, schedules, statements and related documents?
6. To the best of your knowledge, is the information contained in the petition, schedules, statements, and related documents true and correct?
7. Are there any errors or omissions to bring to my, or the court’s, attention at this time?
8. Are all of your assets identified on the schedules?
9. Have you listed all of your creditors on the schedules?
10. Have you filed bankruptcy before? (If so, the trustee must obtain the case number and the discharge information to determine the debtor(s) discharge eligibility.)

Additional Questions The Bankruptcy Trustee May Ask

1. Do you own or have any interest whatsoever in any real estate?
   1. If owned: When did you purchase the property? How much did the property cost? What are the mortgages encumbering it? What do you estimate the present value of the property to be? Is that the whole value or your share? How did you arrive at that value?
   2. If renting: Have you ever owned the property in which you live and/or is its owner in any way related to you?
2. 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)?
   1. If yes: What did you transfer? To whom was it transferred? What did you receive in exchange? What did you do with the funds?
3. Does anyone hold property belonging to you?
   1. If yes: Who holds the property and what is it? What is its value?
4. Do you have a claim against anyone or any business?
5. If there are large medical debts, are the medical bills from injury?
   1. Are you the plaintiff in any lawsuit?
   2. What is the status of each case and who is representing you?
6. Are you entitled to life insurance proceeds or an inheritance as a result of someone’s death?
   1. If yes: Please explain the details.
7. If you become a beneficiary of anyone’s estate within six months of the date your bankruptcy petition was filed, the trustee must be advised within ten days through your counsel of the nature and extent of the property you will receive. FRBP 1007(h)
8. Does anyone owe you money?
   1. If yes: Is the money collectible? Why haven’t you collected it? Who owes the money and where are they?
9. Have you made any large payments, over $600, to anyone in the past year?
10. Were federal income tax returns filed on a timely basis? When was the last return filed?
    1. Do you have copies of the federal income tax returns?
    2. At the time of the filing of your petition, were you entitled to a tax refund from the federal or state government?
       1. If yes: Inquire as to amounts.
11. Do you have a bank account, either checking or savings?
    1. If yes: In what banks and what were the balances as of the date you filed your petition?
12. When you filed your petition, did you have:
    1. any cash on hand?
    2. any U.S. Savings Bonds?
    3. any other stocks or bonds?
    4. any Certificates of Deposit?
    5. a safe deposit box in your name or in anyone else’s name?
13. Do you own an automobile?
    1. If yes: What is the year, make, and value? Do you owe any money on it? Is it insured?
14. Are you the owner of any cash value life insurance policies?
    1. If yes: State the name of the company, face amount of the policy, cash surrender value, if any, and the beneficiaries.
15. Do you have any winning lottery tickets?
16. Do you anticipate that you might realize any property, cash or otherwise, as a result of a divorce or separation proceeding?
17. Regarding any consumer debts secured by your property, have you filed the required Statement of Intention with respect to the exemption, retention, or surrender of that secured property? Please provide a copy of the statement to the trustee. Have you performed that intention?
18. Have you been engaged in any business during the last six years?
    1. If yes: Where and when? What happened to the assets of the business?

Meeting Of Creditors Questions If You Own A Business Or Are Self-Employed

1. Who was responsible for maintaining financial records?
2. Which of the following records were maintained?
   1. Cash receipts journal
   2. Cash disbursements journal
   3. General journal
   4. Accounts receivable ledger
   5. Accounts payable ledger
   6. Payroll ledger
   7. Fixed asset ledger
   8. Inventory ledger
   9. General ledger
   10. Balance sheet, income statement, and cash flow statements
3. Where are each of the foregoing records now located?
4. Who was responsible for preparing financial statements?
5. How often were financial statements prepared?
6. For what periods are financial statements available?
7. Where are such financial statements now located?
8. Was the business on a calendar year or a fiscal year?
9. Were federal income tax returns filed on a timely basis?
   1. When was the last return filed?
10. Do you have copies of the federal income tax returns? Who does have the copies?
11. What outside accountants were employed within the last three years?
12. Do you have copies of the reports of such accountants? Who does have copies?
13. What bank accounts were maintained within the last three years?
14. Where are the bank statements and cancelled checks now located?
15. What insurance policies were in effect within the last year? What kind, and why?
16. From whom can copies of such insurance policies be obtained?
17. If the business is incorporated, where are the corporate minutes?
18. Is the debtor owed any outstanding accounts receivable? From whom? Are they collectible?
19. Is there any inventory, property, or equipment remaining?

This List Is Not Exhaustive
During the meeting of creditors, the trustee can ask you any question he or she sees fit with respect to your assets, debts, and financial history.
Nothing is off-limits during the bankruptcy creditors meeting, particularly if there’s something unique or interesting about your situation. Any bedroom secrets that the trustee learns about may yield additional questions.
That’s why during a consultation, I’m going to ask the same questions in a bunch of different ways. I need to make sure there’s nothing going on that might make a trustee ask unexpected questions.
My clients, after all, expect to be prepared well for their bankruptcy creditors meeting. By knowing the full story, I can anticipate all potential questions and prepare you more fully for your meeting of creditors.
In the end, it all comes down to proper communication.
Image credit:  thewhitestdogalive
Bankruptcy Creditors Meeting Questions was originally published on Consumer Help Central. If you're seeing this message on another site, it has been stolen and is being used without permission. That's illegal, a violation of copyright, and just plain awful.

Deciding to file for bankruptcy is a significant step toward improving your finances.  Whether you have decided to file Chapter 7 or Chapter 13 bankruptcy, one of the most important steps you should take includes getting to know the process and what to expect.  In this sense, it helps to make the filing process easier [...]

Lindsey v. Pinnacle Nat’l Bank (In re Lindsey), Appeal No. 12-6362 (6th Cir., Aug. 13, 2013)
The Sixth Circuit held this week in a published opinion that a bankruptcy court’s denial of confirmation of a Chapter 11 plan is not a final appealable order. In so holding, the Sixth Circuit joins four other circuits, while three other circuits have held to the contrary. Read More ›
Tags: 6th Circuit Court of Appeals, Chapter 11

The meeting of creditors in your bankruptcy case is nothing to be scared of – so long as you know what’s coming.
In every bankruptcy case – be it a Chapter 7 or a Chapter 13 – requires a meeting of creditors. This meeting, required by Section 341 of the U.S. Bankruptcy Code, is also sometimes called a 341 meeting.
Though a necessary part of your bankruptcy case, the meeting of creditors is a simple and straightforward thing that you don’t need to worry about.
Here’s what you need to know.

You’ll Have Plenty Of Advance Notice
The date and time of the meeting of creditors is usually set within a few days of the filing of your bankruptcy case. My office gets notice electronically, and we’ll let you know as soon as we find out.
The meeting of creditors is usually scheduled for 4-6 weeks after the case is filed, so you’ll have plenty of advance notice. This way, you’ll be able to arrange for time off from work or other personal obligations.
The Meeting Of Creditors Isn’t In Front Of A Judge
The meeting of creditors is held by your trustee, whose job is to:

• sell nonexempt property to repay creditors;
• verify that you’ve disclosed all of your assets and liabilities; and
• ensure that you haven’t committed fraud or lied on your bankruptcy papers.

The judge will not be there, and it’s not held in a courtroom. This is nothing like Law & Order.
What to Bring to the Meeting of Creditors
You must bring photo identification and your Social Security card. If you don’t have your original Social Security card or a driver license, you need to order replacements immediately.
The trustee won’t conduct the meeting unless you have both of these documents. You’ll have to come back another time, which will waste more of your time as well as your money in the form of additional legal fees for a needless appearance.
Some trustees have other requirements, but we’ll cover that well in advance of your meeting.
Most Creditors Don’t Show Up
Your creditors will be notified of the date and time of the meeting of creditors, but most times none will show up.
Think about it – every year, well over 1 million bankruptcy cases are filed in the United States. If the credit card companies sent someone to every meeting of creditors then they’d be filing for bankruptcy due to the expense.
From time to time, a creditor will show up to ask you questions. This is usually an ex-spouse, a disgruntled former business associate, or a creditor who thinks there’s a problem with your case.
If that happens, don’t panic – chances are pretty good that we’ll know there’s a problem before the meeting of creditors.
You Will Not Be Alone
If we’re working together on your bankruptcy case, either I’ll be at the meeting of creditors with you or one of the lawyers from my office will be there.
The only reason I won’t be there with you is if I’ve got to be in two places at the same time. If that happens, I flip a coin to see where I’m going to be.
If one of the other lawyers from my office is with you, that lawyer will be prepared with full knowledge of your case. I would never send a newbie lawyer or someone who’s flying blind.
The Meeting Of Creditors Is Over Before You Know It
Once you’re called by the trustee, the entire meeting takes about 4 minutes to complete. You’ll be sworn in, show your photo identification and Social Security card, and answer a few standard questions.
Once that’s done, you’ll be sent home.
The Wait Can Be Annoying
Each month, thousands of people file for bankruptcy. Each one of those people needs to be seen by the trustee for a meeting of creditors.
That means there will be dozens of other people called for their meeting at the same time as you’re there.
At 5 minutes each, the wait adds up. That’s why I tell my clients to bring some reading material and to clear their schedule for the day.
Don’t Lose Sleep Over It
The meeting of creditors is simple and quick. So long as you’re prepared, it will be relatively painless.
My job is to make sure your meeting goes smoothly, so breathe easy.
Image credit: Dougtone
What You Need To Know About the Bankruptcy Meeting of Creditors was originally published on Consumer Help Central. If you're seeing this message on another site, it has been stolen and is being used without permission. That's illegal, a violation of copyright, and just plain awful.