A meeting of creditors is an important event that occurs after a person or business has filed for bankruptcy. It is a meeting with the bankruptcy trustee, the debtor (person or business filing for bankruptcy) and creditors. The purpose of the meeting is for the trustee to ask the debtor a series of questions about the bankruptcy filing, and for the creditors to ask the debtor and trustee any questions they have about the filing.
At the meeting, the debtors must appear in person and bring documents such as pay stubs, tax forms, a list of debts and assets, along with other documents. The trustee also reviews any documents provided by the creditors. The trustee or a court representative may also ask the debtors about their expenses and income.
During the meeting, the trustee evaluates the debtor’s financial situation and the creditors can submit any objections they might have to the debtors or the plan to pay off the debt. If the creditors do submit any objections, the process may take longer and the trustee may need to reevaluate the debtor’s finances.
By the end of the meeting, the creditors and the trustee should have made all the decisions needed to move forward with the bankruptcy filing, such as if the debtors qualify for Chapter 13 rather than Chapter 7. The debtor will then receive their discharge notice in the mail, and they will have legally released their liabilities.
Conclusion
A meeting of creditors is an important process in any bankruptcy filing. It is an opportunity for the debtor to explain to the trustee and creditors about their finances, and for the creditors to object to any proposed plans for repayment. By the end of the meeting, the creditors and the trustee must come to an agreement and the debtor will receive their discharge notice.