Bankruptcy Lawyer for Long Island

Bankruptcy Terms

341 Meeting

Often referred to as a "Meeting of Creditors", the "341 Meeting" allows creditors, the trustee, and the United States Trustee to question the debtor under oath in the Bankruptcy Court.

What is the purpose of the 341 Meeting?
The 341 Creditors Meeting is to give the opportunity to the debtor to clearly and honestly answer questions about their assets and liabilities for the bankruptcy case.  Answers are given under oath as they would be in any Court of Law, and lying under oath is considered perjury.

Why is it called a "341 Meeting"?
The meeting of creditors is set forth by section 341 of the United States Bankruptcy Code.

When does the 341 Meeting take place?
In most cases, the 341 Meeting takes place 25 to 40 days after the debtor files the Bankruptcy Petition. Creditors may or may not attend the meeting, but attendance is not required to object to discharges or file claims.

Will my creditors attend the 341 Meeting?
Creditors often do not attend a the 341 Meeting although they are always notified and given the option to do so. If the creditor chooses to attend the 341 Meeting they are usually given a specific time in which they can question the debtor. It is customary for the trustee to ask questions relating to the financial information provided on  the Statement of Financial Affairs, the Bankruptcy Schedules, and the Bankruptcy Petition.

What happens if certain financial issues cannot be resolved?
In the event that any issue can not be resolved at the 341 Meeting, a motion may be filed to give the Bankruptcy Court additional time to review the issues of the case.

Automatic Stay

The "Automatic Stay" is a temporary measure put into place by the Bankruptcy Court automatically when a petition for bankruptcy has been filed either by an individual or business.

Which Chapters of Bankruptcy provide an Automatic Stay?
Chapter 7, Chapter 11 or Chapter 13 Bankruptcy Section 362(a) of the Bankruptcy Code.

How does an Automatic Stay impact my creditors?
The automatic stay is an injunction against your creditors to stop any activity in favor of the creditor against the debtor.

How does an Automatic Stay impact me?  
The automatic stay stops collection calls, efforts for foreclosure, wage garnishments, continuing lawsuits,
harassment or any other collection efforts. The automatic stay will not apply to financial issues that cannot be
discharged in the bankruptcy filing. Exceptions to the Automatic Stay which exist should be discussed with your bankruptcy lawyer.

Do I have to go to court for the Automatic Stay to take effect?
No. The Automatic Stay goes into effect as soon as the Bankruptcy Petition is filed and there is no need for a bankruptcy hearing at that time.

How long does the Automatic Stay last?
The Automatic stay remain in effect until the time the debtor receives a discharge.

What are some important exceptions I should know about?
The automatic stay only provides temporary relief for the debtor depending on specific circumstances. Under Chapter 7 Bankruptcy the stay may stop immediate foreclosure for certain types of debts secured by real estate, but after 45 days a creditor collecting debt which is secured by property can request the court remove the automatic stay and allow the foreclosure to proceed. An automatic stay continues in effect for the duration of the Chapter 13 bankruptcy process allowing the debtor to restructure their debt with a repayment plan.

What are some examples of what the Automatic Stay will not do?
An automatic stay may not stop collection of all debt payments including family support actions, criminal actions and tax collection actions.

Every financial situation is unique and must be evaluated individually.  You should consult with an experienced bankruptcy lawyer when you decide to move forward with a bankruptcy.