I am high anxiety. That is the way my brain is wired. I can’t help it and neither can anyone else with anxiety for that matter. Most of our MN Bankruptcy Attorneys guests who face overwhelming debt are stressed beyond belief and struggle to pay debt for a really long time. And then, one day, you sit and you think- what am I doing?
I am working two jobs, I am deliriously tired, and the payments I pay on my credit cards are going 90% to pay interest only. At this point it will be like eternity before I pay off these debts. If I am tired now, imagine how tired I will be in 2 more years or hell maybe 10 years? I don’t see my family and all I want to do is quit my second job and live my life in peace. Sound like you?
When the time is right and when you are ready, our Minnesota guests reach out to us at Kain & Scott and file a Chapter 7 Bankruptcy. If you want to file chapter 7 bankruptcy in Eden Prairie, Minnesota, we have an office located in Eden Prairie for your convenience. But once the chapter 7 bankruptcy is filed what happens next? What is the meeting of creditors really like?
1) REQUIREMENT TO ATTEND MEETING OF CREDITORS
The requirement to attend the meeting of creditors can be found in Section 341 of the Bankruptcy Code. Section 341(a) states that within a reasonable time after the filing of the case, the US TRUSTEE “SHALL” convene AND preside at a meeting of creditors.
This meeting is also referred to as a First Meeting of Creditors, although I am not sure why since, in the vast majority of cases, there is only one meeting debtor must attend. In the vast majority of cases, there is no second meeting of creditors.
2) WHERE ARE THESE MEETING CONDUCTED?
A meeting of creditors is a federal hearing and matter, not a state court matter. There are numerous bankruptcy hearing locations across the state of Minnesota. Many of the hearing locations are United States Court houses. There are United States Court houses in Minneapolis, St. Paul, Duluth, and Fergus Falls. Besides these locations, there are numerous other locations. For example, if you live near St Cloud, Minnesota, your hearing will be conducted in the Stearns County History Museum. Strange uh? The United States Trustee’s Office rents space from the Stearns County History Museum to conduct these meetings.
There are numerous bankruptcy hearing locations in small communities nobody would even know exist!
3) WHO IS THE CHAPTER 7 TRUSTEE AND WHAT DO THEY DO?
A chapter 7 trustee is usually a Minnesota lawyer who is appointed to a one year term as a Minnesota chapter 7 panel trustee. The function of a trustee is to collect the non-exempt assets of the estate, and any other property that belongs to the estate, and liquidate the property (sell it) and use the money to pay down debtor’s debts. To the extent debtor’s debts do not get paid off, they get wiped out or discharged.
The other function of a chapter 7 trustee is to make sure the sanctity of the chapter 7 process, laws, and rules, are being followed by debtors and creditors. They are kind of a referee in a way making sure everyone complies with the chapter 7 process. One of those functions involves making sure debtor’s petition and schedules are true and correct and complete.
So, at the meeting of creditors, trustee will ask debtor to raise their right hand. Do you swear to tell the truth, the whole truth, and nothing but the truth? Debtor will say I do.
The questions trustee will ask go something like this: Did you sign the petition and schedules you filed with the court? Yes. Did you review the information on the schedules before it was filed with the court? Yes. Are all of your assets and debts listed on the schedules. Yes. Have you ever filed for bankruptcy before? No. Do you own any real estate? No. Did you pay anyone unsecured creditor $600.00 or more in the last 90 days? No. Did you pay a family member $600.00 or more in the last year for money you owed them? No. Did you transfer any assets to anyone in the last 2 years? No. Did you transfer any assets to a family member or friend in the last 6 years, besides token gifts? No. Do you expect to inherit any money in the next six months? No. Do you have any assets of any sort we have not talked about or that are not listed on your schedules? No.
These are sort of the standard questions. There may be more there may be less depending on the case, the trustee, and whether creditors are present or not.
4) WHO IS PRESENT AT THE MEETING OF CREDITORS?
In the vast majority of chapter 7 hearings, the trustee is present, debtor is present, debtor’s lawyer is present and that is it. Creditors have the right to be present but they rarely appear at these hearings. Why? Because most debtors have nothing to lose. Most debtors will not lose any assets in bankruptcy. Plus, for creditors, bankruptcy is a cost of doing business.
Many of our guests think that when you file bankruptcy creditors are shocked. They are not. Most creditors already know what they will lose on January 1 of each year for that year due to bankruptcy filings. In other words, bankruptcy is simply a cost of doing business and is not really that exciting for creditors.
CONCLUSION
Well there you have it. A meeting of creditors is a bit of a misnomer. Why? Because most creditors never even appear at it! The meeting is a really a chance for the government to verify the voracity of the schedules filed with the court and to have debtor verify that the schedules are true and correct and complete. The meetings typically take anywhere from 5-10 minutes. Many of our guests even forget they were ever even required to attend a meeting as they quickly forget about the hearing.
When the time is right, or when you are ready, reach out to Minnesota’s Bankruptcy Helpline at www.kainscott.com. You will be so glad you did!
