A meeting of creditors in Chapter 11 bankruptcy, also known as a 341 meeting, is a mandatory meeting between the debtor and creditors. Here are the key points about this meeting:
Purpose
The primary purpose of the 341 meeting is to examine the debtor's financial position, confirm the facts stated in the bankruptcy filing, and facilitate the negotiation of a reorganization plan. 23
Conduct
In Chapter 11 cases, the meeting is typically conducted by a representative of the United States Trustee, rather than a bankruptcy trustee, as is common in Chapter 7, 12, and 13 cases. 24
Attendance
The debtor must attend the meeting, and creditors are invited but not required to attend. The meeting provides an opportunity for creditors to ask questions about the debtor's financial affairs and the proposed reorganization plan. 23
Procedure
The meeting is usually held shortly after the bankruptcy filing, typically within 20 to 60 days. The representative of the United States Trustee will verify the debtor's identity, review the bankruptcy paperwork, and ask questions to ensure that all necessary information is accurate and complete. 23
Outcome
The meeting helps in establishing a plan for reorganization, which includes how the debtor intends to repay creditors over time. The plan must be approved by the creditors and the bankruptcy court. 45In summary, the 341 meeting in Chapter 11 bankruptcy is a critical step in the reorganization process, allowing for the examination of the debtor's financial situation and the negotiation of a repayment plan with creditors.
