8 Vital Things To Know About Your Creditor's Meeting
Most people know that a bankruptcy filing is a legal procedure and just assume that a court hearing is part of the process. What many people do not realize, however, is that the "creditor's meeting" will very likely be the one and only time you must appear in an official capacity to finalize your bankruptcy. The importance of this meeting and its impact on your bankruptcy case should not be underestimated; it is here that you will be swearing under oath that your bankruptcy petition is accurate. Additionally, creditors who have an issue with your petition are allowed to appear to question you about your financial affairs. Read on to learn 8 vital facts about the creditor's meeting.
1. Make sure you bring government-issued photo identification with you to the meeting—a valid driver's license or passport will suffice. Additionally, bring along your copy of the bankruptcy petition.
2. This meeting is presided over by your bankruptcy trustee and is usually held in a federal building of some sort, though not necessarily an actual courtroom. Be prepared for anything from a large conference or training room to a court room.
3. Set aside two-to-four hours for this meeting. Don't be alarmed! This meeting will be attended by many other bankruptcy filers just like you. Your part of the day will very likely last a few minutes, at the most. These meetings are sometimes open to the public, but try not to bring your children with you that day.
4. You can expect filers to be called up to the bench or table in alphabetical order. When called, stand and approach the trustee where you will pledge to tell the truth. The trustee usually asks everyone the same questions, so you will have a preview of what's coming (unless you're called first). Commonly, the trustee will ask questions like:
- Did you file your taxes this year?
- Have you read your bankruptcy petition, is it accurate, and is that your signature on it?
- Have your ever filed for bankruptcy in the past?
5. Don't panic if you don't see your attorney right away. They may have several clients at the same meeting and may be meeting outside of the courtroom with some of them. The attorney will likely appear once your name is called and will stand by your side for the questioning. Be sure to check with your attorney ahead of time to see what the usual procedure is.
6. The very name "creditor's meeting" can send chills up the spine, but creditors very seldom attend these meetings. Unless you have an issue with one of your debts, you will likely only see a creditor that is there to verify a loan reaffirmation. Reaffirmations allow a debtor to agree to pay off a loan in order to keep the property that is secured by the debt, such as a vehicle.
7. If a creditor does attend, you may have an issue with a fraudulent use of your credit. Recent use of credit cards, running up credit card debt right before filing, taking large cash advances just prior to filing, and using a credit card for luxury items, can all trigger a red alert for a creditor. You will need to be prepared to show that your purchases were for needed items, such as a vehicle repair or a washing machine, rather than a vacation trip. You also need to explain how you expected to repay the debt at the time. If you cannot, you may not be able to include that debt in your bankruptcy.
8. In most cases, your time at the trustee's desk is over in a few minutes and you are on your way. Soon your bankruptcy's final disposition will be issued, and you can begin to rebuild your financial future.
For more specific information, consider contacting a bankruptcy attorney, such as Donald T Tesch, PS.