Legal Definitions - 341 meeting

A 341 meeting is a mandatory gathering held early in a bankruptcy case, named after Section 341 of the U.S. Bankruptcy Code. It is also commonly referred to as the "creditors' meeting," although creditors are not required to attend.

The primary purpose of this meeting is for the bankruptcy trustee (or a representative of the United States Trustee in Chapter 11 cases) to question the debtor under oath about their financial situation and to confirm the accuracy and completeness of the information provided in their bankruptcy filing. The debtor must attend this meeting and answer questions truthfully, as they are under penalty of perjury.

During the 341 meeting, the trustee will typically ask a series of standard questions to verify the debtor's identity, confirm they signed and understood their bankruptcy documents, and ensure that all assets and debts have been fully disclosed. Creditors and other interested parties also have the opportunity to ask questions about the debtor's financial affairs, though they often choose not to.

Here are a few examples of how a 341 meeting applies in different bankruptcy scenarios:

• Example 1: Individual Chapter 7 Bankruptcy

  Imagine Maria, who has lost her job and accumulated significant credit card debt and medical bills, decides to file for Chapter 7 bankruptcy to get a fresh start. Approximately 30 days after filing her petition, Maria receives a notice to attend her 341 meeting. At the meeting, the bankruptcy trustee will ask Maria questions to confirm her identity, verify that she listed all her assets (like her car and personal belongings) and all her creditors, and ensure she understands the information in her bankruptcy paperwork. The trustee's goal is to make sure Maria hasn't hidden any assets or misrepresented her financial situation, ensuring a fair process for her creditors.

• Example 2: Individual Chapter 13 Bankruptcy

  Consider David, who has a steady income but fell behind on his mortgage payments and car loan due to an unexpected family emergency. He files for Chapter 13 bankruptcy to propose a repayment plan to his creditors over three to five years. David must attend his 341 meeting, where the trustee will review his proposed payment plan. The trustee will question David about his income, monthly expenses, and the feasibility of his plan to ensure he can realistically make the proposed payments and that the plan meets legal requirements. His mortgage lender might attend to ask questions about the property's value or his ability to cure the arrears.

• Example 3: Small Business Chapter 11 Bankruptcy

  Suppose "The Daily Grind," a local coffee shop, is struggling with rising operational costs and declining sales. The owner, Mr. Chen, files for Chapter 11 bankruptcy to reorganize the business's debts and continue operations. Mr. Chen, as the representative of The Daily Grind, will attend the 341 meeting. In this Chapter 11 case, a representative from the United States Trustee's office will preside. They will question Mr. Chen about the business's assets, liabilities, its financial projections, and the proposed reorganization plan. Key creditors, such as the landlord or major suppliers, are more likely to attend this meeting to understand the business's financial health and protect their interests in the reorganization process.