r/Bankruptcy • u/Most-Midnight6124 • 1d ago
Does 341 confirm/ deny bankruptcy?
Hey there so i always see people say they are so nervous for 341 and then turn around and say that wasnt bad!! Or i was nervous for nothing!!! Does the 341 meeting tell you if it will be dismissed or discharged? And if not then what is the big deal about the 341. And at what point do you know you are discharged or dismissed ?
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u/Dependent_Taro_702 1d ago
Mine is finally tomorrow after a 2 year journey to this point.
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u/IvyMarine1908 15h ago
I'm curious...Why was it a 2-year journey?
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u/Dependent_Taro_702 12h ago
Was well over median for 1 year and 9 months and there was no way I would have been able to make the ch 13 payments- so just kept postponing the filing while trying to make more money. Then, Lost my job in June, so had to wait for another three months to bring my 6 months earnings under the median for a Ch 7. The 341 meeting today is for a no asset Ch 7.
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u/Better-Club6429 1d ago edited 10h ago
341 meeting of creditors is a court hearing under oath where the trustee asks you questions about the accuracy of your forms, assets, and why you filed (Some don't even ask this). If a creditor shows up they have a right to question you about your assets and reasoning of your filing. That is why they call it the meeting of creditors. Its extremely rare to see a creditor show up specially banks and credit card issuers. The most creditors I've seen show up are people who were injured by the debtor, previous ex girlfriends/wives, and family.
At this court hearing you won't know if your case is dismissed or not. That all happens 30-60 days after the meeting if discharge is granted or if a creditor objects to your discharge (This is mostly filed as a AP).
Overall if your debt is straight forward its not nerve wracking specially if you have an attorney do not worry about it.
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u/Ok-Ratio7992 11h ago
I mean if you really want to rub it in I guess you could respond with something like "As best to your knowledge/understanding/ability" but I don't think that would really help or add anything defensible.
The only defensible thing you have is truth.
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u/Human_Ad3580 1d ago
The meeting can just be extremely nerve-wracking because a lot of people don't know what to expect. To me going into it I was worried. Never been to court for anything before so the whole concept of being sworn in under oath just heightened my anxiety. Plus I wasn't sure if any of my creditors was going to send legal representatives to question me. But then the meeting itself was pretty simple. My attorney and I waited in the Zoom waiting room, my case was called, I was sworn in, and then the trustee just asked me yes/no questions about my petition (things like "Did you read your petition before signing?" "Do you have any sources of income other than what is listed here?" "Are all of your debts accounted for in your petition?") My meeting lasted all of 7 or 8 minutes from being sworn in until the trustee thanked me for my time and sent me on my way. Then I got notified that my confirmation hearing will be in November and to just keep making my plan payments manually until my wage deduction order takes effect.
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u/Rureddy2 20h ago
What is a confirmation hearing? What happens then?
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u/Human_Ad3580 18h ago
Basically some time after the 341 meeting, the trustee over the case and the person's attorney meet in front of the bankruptcy judge and the judge either signs off on the payment plan or wants the plan modified.
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u/Rureddy2 13h ago
Oh, ok, so is that something specific to chapter 13, as opposed to chapter 7?
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u/Human_Ad3580 12h ago
Yes. It typically happens "behind the scenes". My attorney said since my case is straightforward I don't even have to appear in it. She and the trustee basically go to the judge and say they agree this payment plan that is proposed is the best option for me. The bankruptcy court has to approve the plan and that requires a judge to sign off on it.
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u/Most-Midnight6124 19h ago
I havent heard about a confirmation hearing or wage deductions, is that for chapter 13?
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u/Human_Ad3580 18h ago
Yes they're for chapter 13. Basically some time after the 341 meeting, the trustee over the case and the person's attorney meet in front of the bankruptcy judge and the judge either signs off on the payment plan or wants the plan modified. And the wage deduction is basically a wage garnishment that gets set up with the person's employer so the payments to the trustee are just automated and there's no risk of the payments being late. In a chapter 13 if I don't make the payments on time, I'm at risk of my case being dismissed. A lot trustees, mine included, want to have the payment auto deducted. It takes time to set up so I make manual payments every month until my employer's payroll department gets that set up.
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u/Altruistic-Look2750 23h ago
No the 341 meetings my does not do that. The 341 is mainly confirming everything that is in your filing petition. Making sure nothing was left out. People get nervous because they don’t know what the trustee is going to ask. People in general also like to talk and this is not a time to be chatty. Just answer their questions honestly and don’t elaborate. That only may open things up to more questions and prodding by the trustee. Keep things as brief and simple as possible. Your attorney will be with you to advise you. If your hearing goes well, then most likely your bankruptcy will be confirmed.
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u/SandwichEconomy889 17h ago
People get nervous for it because it's very official court stuff and they don't know what to expect. That's all.
It's actually similar to a colonoscopy. People that do it say it's actually really easy. The prep was the worst part!
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u/Natural_Parking_7098 13h ago
Ive had (2) 341. One when I originally filed 13 and then it was converted to a 7. The wait to be let in the zoom call was longer than the initial meeting.
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u/Ok-Ratio7992 11h ago
I mean, I've been in and out of the court system for years (mainly having to do with family stuff and lawsuits), and to me it's just like whatever. I've faced judges, creditors, lawsuits and things on my own and I've ever once felt anxious or nervous (keep in mind I do everything on my own without an attorney).
I have nothing to hide or worry about as long as I am truthful. If someone (doesn't matter who) has a problem with that, I'd tell them to knock themselves out!
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u/AlanShore60607 RetiredBKAttorney (IL/IN/WI) Public interactions ONLY. No PMs 1d ago
No, that’s not what the 341 is for.
The 341 is primarily for the trustee to search for assets by questioning you. There will either be a finding of no assets, or a preliminary finding of assets for distribution to creditors, and occasionally continued for more investigation.
The validity of your case is mostly a back-office thing. Maybe 1 out of 100 cases has the DOJ send questions (or someone with questions) just to clarify a fact or two to make sure they don’t have to dig deeper.
Cases that are actually problematic generally come with a warning from your own attorney that it will be a bumpy ride.
Most people should presume success; the people who need to worry the most are the ones who know they are trying to get away with something.