After you file for bankruptcy in Alabama, one of the required steps is the meeting of creditors. The name may sound formal, especially if you have never gone through bankruptcy before. But knowing its purpose can make the process easier to follow.
You may also hear people call it a 341 meeting, after the section of federal bankruptcy law that requires it. A bankruptcy judge does not attend, and the meeting is not a trial. Instead, the trustee handling your case reviews your filing and asks you about the information you reported. Creditors receive notice and have the right to take part.
What happens during the meeting
The trustee usually starts by confirming your identity. Next, the trustee may ask whether you reviewed your bankruptcy papers before signing them and whether the information remains accurate.
The discussion then turns to your finances. You might answer questions about your income, debts, property or monthly expenses. Your answers help the trustee compare what you say with the forms and records already in your case.
In the meeting, you answer under oath. If something in your filing is wrong or has changed since you submitted it, you may have to explain the difference. Creditors also have the right to attend and ask relevant questions, although not all will take part.
How you can prepare
Your meeting notice tells you when the session will take place and how you will attend. Reading it ahead of time may help you follow the instructions that apply to your case.
Federal bankruptcy rules also require several records. You show proof of your identity, your Social Security number and records of current income. Unless the trustee tells you otherwise, you also turn over account statements that show the balance on the date you filed.
Tax records follow a separate timing rule. If you filed a federal income tax return for the latest tax year ending before your case began, you give the trustee a copy or transcript at least seven days before the first meeting date. If you did not file that return, federal rules call for a written statement instead.
Getting ready for this part of your case
The meeting gives the trustee a chance to compare your answers with the information in your bankruptcy papers. You may want to read your notice, review your forms and gather the records the trustee requested. If something changed after you filed, reviewing your debt relief case may help you understand what comes next.