Legal Definitions - 341 notice

The 341 notice is an official document issued by the bankruptcy court clerk to all parties involved in a bankruptcy case. The "341" refers to Section 341 of the U.S. Bankruptcy Code, which mandates a meeting of creditors. This notice serves as the formal announcement of the date, time, and location for this mandatory meeting, often called the "Meeting of Creditors" or "341 meeting."

The 341 notice is crucial because it provides essential information to the debtor (the person or entity filing for bankruptcy), their creditors, and any other interested parties. Key details typically included in the notice are:

• The full name, address, and other identifying information of the debtor.
• The unique case number assigned to the bankruptcy proceeding.
• The name and contact information of the bankruptcy trustee appointed to oversee the case.
• A list of important deadlines, such as the last day for creditors to object to the debtor receiving a discharge of their debts or to file a formal claim for money owed.
• Instructions for creditors regarding how to participate in the process.
• The address of the bankruptcy clerk's office.

This notice ensures that all relevant parties are informed of their responsibilities and opportunities within the bankruptcy process, particularly concerning the meeting where the debtor will be questioned under oath.

• Example 1: An Individual's Chapter 7 Bankruptcy

  Sarah, overwhelmed by credit card debt and medical bills, files for Chapter 7 bankruptcy. A few weeks later, she receives a 341 notice in the mail from the bankruptcy court. This notice informs her that her mandatory Meeting of Creditors is scheduled for a specific date and time at the local bankruptcy court building. It also lists the name of the bankruptcy trustee assigned to her case and important deadlines, such as the last day for her creditors to object to her discharge. Her credit card companies and medical providers also receive this same notice, informing them of the opportunity to attend the meeting and question Sarah about her assets and financial situation.

  This example illustrates the 341 notice's role in informing an individual debtor of their required attendance at the Meeting of Creditors and providing creditors with the necessary details to participate and protect their interests.

• Example 2: A Small Business Filing for Chapter 11 Reorganization

  "The Daily Grind," a local coffee shop struggling with declining sales and mounting supplier debt, decides to file for Chapter 11 bankruptcy to reorganize its finances. The bankruptcy court clerk sends a 341 notice to the coffee shop's owner, its landlord, its primary coffee bean supplier, and the bank holding its business loan. The notice details the date and time for the Meeting of Creditors, where the owner will be questioned by the trustee and creditors about the business's assets, liabilities, and reorganization plan. It also specifies the deadline for creditors to file a proof of claim to ensure they are considered in the repayment plan.

  This example demonstrates that businesses, not just individuals, receive 341 notices when they file for bankruptcy, and that business creditors rely on this notice for critical information about the meeting and deadlines relevant to their financial recovery.

• Example 3: A Bank as a Creditor in a Customer's Bankruptcy

  First National Bank holds a mortgage for a customer, Mr. Henderson, who recently filed for Chapter 13 bankruptcy. The bank's legal department receives a 341 notice from the bankruptcy court. This notice is crucial for the bank because it clearly states the date and time of Mr. Henderson's Meeting of Creditors, allowing the bank to send a representative if they wish to question him about his financial plan or assets. More importantly, the notice provides the deadline for the bank to file a proof of claim, which is essential for them to be included in any repayment plan Mr. Henderson proposes through his bankruptcy.

  This example highlights the 341 notice's importance from a creditor's perspective, providing them with the necessary information to participate in the bankruptcy proceedings and meet critical deadlines to protect their financial stake.