In What You Need to Know About Your Meeting of Creditors, we talked about how the Meeting of Creditors is a serious part of the bankruptcy process but not something you necessarily need to fear. 

In this article, we talk about what types of questions you can expect at your meeting with the trustee in your Chapter 7 case.

If you file a Chapter 13 case, you can learn more about a Chapter 13 meeting of creditors at Chapter 13: What Happens at the Meeting of Creditors?


 

The types of questions you encounter may be a bit different than these, depending on the trustees in your jurisdiction, but these are typical of what you'll find across the country. Your attorney should prepare you for the meeting by providing you a list or by going over the questions you can expect.

Most meetings take no more than ten to fifteen minutes, and almost every time, my client would leave the meeting saying, "Wow, that wasn't so bad at all." The typical case really is as easy as I describe it here. Some cases, however, will require more extensive questioning, especially if the debtor has assets that the trustee will be taking over, the debtor's business dealings are complicated, or the debtor's expenses listed in his schedules are unusual or higher than normal or his income is high, giving rise to what is known as the "presumption of abuse."  

For a video that describes a typical meeting of creditors, visit Creditors Meeting or What to Expect at your Chapter 7 341 Meeting.

Here is the process for a typical meeting:

1. When the trustee calls the case, please take a chair as the trustee indicates. Have your ID and Social Security Card ready to hand to the trustee. If you are unable to provide the trustee with proper identification, your meeting will not be held and you will be required to come back on a later date. 
2. The trustee will turn on the tape recorder (or start recording on a computer), identify the case and ask you to raise your right hand and swear or affirm to tell the truth. He/she will verify that your ID and your Social Security number match the paperwork filed in your case. 
3. Often at this point, the trustee may ask the following questions or turn the questioning over to your attorney:
   • When you came to my office, did we discuss the different types of bankruptcy you could file?
   • Based on your particular circumstances, you chose Chapter 7. Is that correct? 
   • Briefly explain to the trustee what caused you to file this bankruptcy case.
   • We provided you with worksheets with which you gathered financial information. Is that correct?
   • We used that information to produce the paperwork filed in your case. Did you have an opportunity to review that paperwork before it was filed?
   • Did you list all of your assets and all of your debts?
   • Are there any lawsuits you could file against anyone that might result in a cash award?
   • Do you have any property that is not listed on the paperwork?
   • Is anyone holding any property for you that is not listed on the paperwork?
   • Are you the grantor or beneficiary of a trust?
   • Have you sold or transferred any property in the last two years? 
   • Do you owe any domestic support obligations, such as alimony or child support?
   • Do you understand that if you become entitled to a windfall of money, such as an inheritance, insurance proceeds or lottery, that you must report that to me and to the Trustee before you spend any of it because it may not be yours to keep?
4. Your attorney will then indicate to the trustee that the questioning is complete by saying something like, "I pass the witness." 
5. The trustee will ask any follow-up questions that he/she might have, especially if you have any non-exempt property, unusual transactions or events listed in your schedules. Those questions might include something like:
   • When you sold your house last year, what did you do with the proceeds?
   • Why did your income drop (or go up) six months ago?
   • Did you make an insurance claim when your house was burglarized?
6. If any creditors are present, the trustee will ask if the creditor would like to ask any questions. Normally, the only creditors present will be those that have an interest in collateral, like a car. They will want to verify that the collateral is properly insured, and will ask if you intend to sign a reaffirmation agreement and keep the collateral or surrender the collateral back to the creditor.
7. The trustee will indicate that he/she has no further questions and that you are excused. 

That's it!  Really.