Meeting Of Creditors Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Meeting Of Creditors, written in plain English, along with examples of how it is used.
What is Meeting Of Creditors?
Meeting where a bankruptcy trustee’s studies the debtor’s filing for bankruptcy and questions the debtor under oath. All of the debtor’s creditors are invited to attend the meeting and can ask questions, although they rarely attend.
History and Meaning of Meeting Of Creditors
A meeting of creditors is an important stage in any bankruptcy case. It is an opportunity for the bankruptcy trustee to question the debtor under oath and review the bankruptcy filing. All creditors are notified of the meeting and invited to attend. At the meeting, they have the right to ask questions of the debtor, although it is rare for creditors to attend. The trustee uses the meeting to determine whether the debtor has any assets that can be used to pay off some of their debts.
The meeting of creditors is mandated by law under Section 341 of the Bankruptcy Code. The Code requires the debtor to attend the meeting and answer questions truthfully under penalty of perjury. The purpose of the meeting is to allow creditors and the trustee to examine the debtor and determine whether there are any assets that can be used to pay off certain debts.
Examples of Meeting Of Creditors
- John had to attend a meeting of creditors after filing for bankruptcy.
- The trustee reviewed the bankruptcy filing and asked questions during the meeting of creditors.
- The meeting of creditors was scheduled for 30 days after the bankruptcy filing.
- Laura's creditors did not attend the meeting, which made the process less stressful for her.
Legal Terms Similar to Meeting Of Creditors
- Bankruptcy trustee: a person appointed to administer a bankruptcy case.
- Chapter 7 bankruptcy: a type of bankruptcy that involves liquidating assets to pay off debts.
- Section 341 meeting: a meeting of creditors required by law in all bankruptcy cases.