How To Prepare For Your Bankruptcy Meeting Of Creditors

Posted on: 13 September 2022

Are you filing for Chapter 13 bankruptcy, and will soon be holding your meeting of creditors, also known as the 341 meeting? If so, you'll want to know the following tips to be well prepared.

Review Your Budget

It's crucial that you review your budget, which is known as schedules I and J. This lists the amount you receive and spend as part of your budget. You are going to be asked a lot of questions regarding what your expenses are, such as how much you pay for your home utilities or how much you spend on child care. Reviewing your budget and ensuring its accuracy means that you'll be well prepared for any questions asked of you.

One thing to keep in mind is that the meeting of creditors is not in a courtroom and not under oath. However, a bankruptcy trustee will be reviewing your answers to potentially qualify or disqualify you for bankruptcy. 

Have An Explanation For Your Budget

It's possible that the bankruptcy trustee is going to question certain items in your budget that they may object to. This is often done if there is a budgetary item that is unusually large compared to most people going through bankruptcy. It's important that you have reasons for these budget items so that you can explain them. 

For example, if your daycare costs are a lot higher than the typical family's, then you'll need to justify why your daycare costs are what they are. These questions are asked to ensure that your budget is fair and that you are not bloating certain items in order to claim they use more money than they should. 

Know Who Can Attend The Meeting

A meeting of creditors is actually a meeting that is open to the public. While its main purpose is for your creditors to be able to attend and make objections, anyone can attend the meeting if they know about it. This means that friends or family could show up and learn about your bankruptcy. However, this also means that you can attend these meetings for other people going through bankruptcy, and learn more about the process if you are unsure about how it will go. 

Know About Objections

It is possible that your repayment plan will be objected to by the trustee during this meeting. If this happens, you will need to make corrections to the plan or appeal the objection. If you have good justifications for your proposed repayment plan, it will likely be approved by a judge.  

For more information, contact a local attorney like Alan G. Seligson PC.