Why Creditors Attend 341 Meetings

September 16, 2024

Creditors attend 341 meetings, also known as the meeting of creditors, for several reasons:

To Ask Questions: Creditors may attend to ask the debtor questions about their financial situation, assets, and liabilities. This includes clarifying any discrepancies or concerns they have about the information provided in the bankruptcy filing. 24
To Verify Information: Creditors may want to verify the accuracy of the information provided by the debtor in their bankruptcy petition and schedules. This helps ensure that all assets and debts are properly disclosed. 14
To Discuss Repayment Plans: In some cases, creditors may attend to discuss potential repayment plans or to negotiate terms of debt repayment. This is particularly relevant in Chapter 13 cases where a repayment plan is proposed. 24
To Inquire About Collateral: Creditors with secured debts may attend to ask about the location and condition of their collateral, such as property or vehicles. 34
To Address Specific Concerns: Smaller or individual creditors may be more actively involved and attend the meeting to address specific concerns or to ask detailed questions about the debtor's financial situation. 6

However, it is worth noting that creditors rarely attend 341 meetings. In most cases, the meeting is primarily between the debtor and the bankruptcy trustee, with creditors often choosing not to participate. 36