341 Meeting: What It Is, How It Works, Example

What Is a 341 Meeting?

The term “341 meeting” refers to a meeting between creditors and debtors that is required to take place during the course of a Chapter 7 bankruptcy proceeding. Accordingly, its name is derived from section 341 of the bankruptcy code. A 341 meeting is typically scheduled roughly one month after a debtor files for bankruptcy.

How 341 Meetings Work

The 341 meeting is one of many stages involved in declaring Chapter 7 bankruptcy in the United States. Its primary purpose is to establish the facts of the bankruptcy in question and to ensure that all the paperwork necessary to carry out the bankruptcy proceedings is in order. Although the attorneys of the debtor and creditor are welcome to attend, the only parties whose presence at the 341 meeting is legally required are the debtor in question and the court-appointed bankruptcy trustee.

Prior to the 341 meeting, the trustee would have already reviewed the bankruptcy paperwork and financial records submitted by the debtor. The purpose of the 341 meeting, therefore, is principally for the trustee to confirm the facts stated by the debtor and to collect any additional paperwork that may be required. In the event that the debtor is attempting bankruptcy fraud, this would likely be detected by the trustee during or prior to the 341 meeting.

From the debtor’s perspective, the objective of the 341 meeting is to provide the necessary documents in order to prove that their identity is authentic, while also establishing their current assets, liabilities, income, expenses, and other relevant financial circumstances. If the creditors are in attendance, they will be able to ask clarifying questions, such as whether the debtor is entitled to any upcoming income sources (e.g., tax rebates or inheritances) or owns undisclosed assets, such as shares in a private business or assets held overseas.

Real World Example of a 341 Meeting

Robin is a bankruptcy trustee currently presiding over a 341 meeting. The debtor present declared bankruptcy over a $5,000 debt and has attended the meeting along with their bankruptcy lawyer. Likewise, the creditor and their lawyer are also present.

Robin's first priority is to verify the identity and financial status of the debtor. Although Robin already reviewed many documents prior to the meeting, the 341 meeting provides an occasion to ask follow-up questions about the documents provided and obtain any additional disclosures deemed necessary. In the unlikely event that the debtor was attempting bankruptcy fraud, this would also likely be detected due to discrepancies or inadequacies in the documents provided.

During the meeting, the lawyers for the debtor and creditor engaged in a detailed conversation regarding the debtor’s assets, liabilities, and income sources, and they were able to negotiate a general plan for the gradual repayment of the outstanding debt. As is the case with most 341 meetings, the meeting took place at Robin's office, rather than in court before a judge.

The Bottom Line

A 341 meeting allows the trustee overseeing a bankruptcy filing to meet and talk with the filers. It's an excellent opportunity to get a more personal take on their financial situation and perhaps work out a repayment plan prior to meeting with the judge.