What to Expect at a Chapter 7 Creditor's Hearing in Massachusetts
If you're a resident of Massachusetts who's struggling to repay your outstanding debt, Chapter 7 bankruptcy may be the right option for you. Chapter 7 allows you to erase certain debts and get a fresh start financially. The process is complicated and involves several key steps, including the meeting of creditors. The meeting of creditors can potentially have a significant impact on your case and it's important to understand what it entails.
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Function
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The primary function of the meeting of creditors, also known as a 341 meeting, is to ensure that you have been accurate and truthful with regard to the information that you've provided to the court and that no significant changes have occurred in your financial situation. The bankruptcy trustee who is in charge of overseeing your case will use the information gathered at the meeting to determine whether to recommend your case for discharge. The meeting is also an opportunity for your creditors to challenge the validity of your case or raise objections to the discharge of a particular debt.
Time Frame
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In Massachusetts, the meeting of creditors is typically scheduled within 30 to 45 days of filing your initial petition. You are required to provide the bankruptcy trustee with a copy of your prior year's tax return at least seven days before the date of the meeting. You must also provide your creditors with this information if it is requested. The meeting itself is typically very brief, usually lasting anywhere from five to fifteen minutes. The bankruptcy trustee may request a continuance if it's determined that more time is necessary to verify your information.
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Process
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The meeting of creditors is presided over solely by the bankruptcy trustee. Meetings take place outside the courthouse at locations established by the Massachusetts district bankruptcy court. You are the only individual whose attendance is required, although you may bring your attorney if you have one. In most cases, creditors choose not to appear. You must bring two forms of ID to the meeting, as well as your income statements for the previous six months. During the meeting, the trustee will ask you questions about the type and amount of your debts, any assets you may have, any property you have bought and sold or given away in the last year, recent payments you've made to your creditors, changes to your income and any expected changes to your financial situation.
Considerations
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If you fail to attend the meeting of creditors, the trustee may recommend to the bankruptcy court that your case be automatically dismissed. Offering false or incomplete information is also grounds for automatic dismissal. Your creditors have 60 days from the conclusion of the meeting to file an objection to your case. Within this same period, the trustee may move to dismiss your case if he finds that you are ineligible for bankruptcy protection. If no new issues are raised during the meeting of creditors, you can typically expect your Chapter 7 case to be discharged within 75 days.
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References
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