Question: Are 341 Meetings Scary?

What is a 341 meeting like?

341 meetings are held in a meeting room or a courtroom.

When the case is called, the bankruptcy trustee will place the debtor under oath, and ask to see a photo ID and documentation of the debtor’s social security number.

The trustee will also try to identify other issues relevant to the administration of the estate..

What happens after the 341 meeting of creditors?

After the 341 meeting, you will need to stay on track and satisfy the bankruptcy court’s requirements. If you complete all of the requirements, your case will be closed in a matter of months. Here are the things you may still need to do: Make nonexempt property available to the trustee.

Will I get a tax refund if I filed Chapter 7?

A tax refund is an asset in both Chapter 7 and Chapter 13 bankruptcy. It doesn’t matter whether you’ve already received the return or expect to receive it later in the year. … As with all assets, when you file for bankruptcy, you can keep your return if you can protect it with a bankruptcy exemption.

How do I file my taxes after Chapter 7 discharge?

The correct way to ensure that you do not have to pay taxes on any debt “forgiven” in bankruptcy, and properly allocate any tax attributes, is to file IRS Form 982 for the tax year in which you received your bankruptcy discharge.

How long does a 341 meeting last?

ten minutesThe Length of the 341 Hearing A creditor’s questions can be short, as well. If they aren’t, the trustee will usually continue the debtor’s meeting for another time to allow further questioning (more below). In most cases, the hearing ends after ten minutes or less.

Do creditors come to the 341 meeting?

In most cases, creditors rarely appear at the meeting of creditors. The meeting of creditors (also called the 341 hearing) is a mandatory hearing almost all bankruptcy debtors must attend. At the 341 hearing, creditors have the right to ask you questions under oath about your bankruptcy papers and financial affairs.

What are the negatives of filing Chapter 7?

What are the Cons of Filing Chapter 7 Bankruptcy?You can’t file Chapter 7 if you make too much money. … If you have good credit, it will likely take a temporary hit. … It does not erase all unsecured debts. … You can lose certain types of property. … Your Chapter 7 bankruptcy filing does not protect others.More items…•

What questions do they ask at 341 Meeting?

Along with these mandatory questions, the trustee may ask about your property and other assets, your income, your expenses, your debts, and so on. The trustee might also ask about discrepancies in your bankruptcy forms, how you came up with a value for various property items, and so on.

Do they freeze your bank account when you file Chapter 7?

The banks’ position is that all of the debtor’s assets come under the control of the bankruptcy trustee immediately after filing for Chapter 7 until the debtor receives a debt discharge, and that freezing the accounts protects the funds for the trustee.

What if my income goes up after filing Chapter 7?

Individuals who file for Chapter 7 bankruptcy are required to report to their trustee any change in income both before and six months after they receive any discharge/cancellation of a debt. A sudden increase in income before Chapter 7 is filed can mean you qualify for a Chapter 13 bankruptcy instead.

Can you spend money after 341 meeting?

Typically we can spend your pay check, just like everyone else, on whatever you want after you file for bankruptcy. You can buy furniture and go on vacation after you file, so no worries.

Can I buy a car after 341 meeting?

Yes-so long as the Trustee has no claim on the money you are using to buy the car. … The Trustee and creditors have 30 days after the meeting of creditors to object to exemptions, although they rarely do. So you should wait at least that long if you are using money you have exempted.

Does Chapter 7 trustee check your bank account?

Even though it is not a formal requirement under the Bankruptcy Code, most Chapter 7 bankruptcy trustees ask filers to provide them with a copy of their bank account statement before the 341 meeting. Many ask for the statement that covers the filing date while some request several months of bank statements.

How much cash can you keep when filing Chapter 7?

There is not a specific cash exemption available under federal bankruptcy exemptions. However, there is a wildcard exemption you can use to protect up to $1,325 in any property. You can also use up to $12,575 of any unused portion of a homestead exemption to protect cash in a Chapter 7 case.

How does filing Chapter 7 affect your taxes?

In a Chapter 7 case, Archer explained, the failure to pay post-petition taxes will affect neither the bankruptcy nor the tax debt. “The (post-petition tax) debt isn’t discharged in the bankruptcy case, and the bankruptcy code prohibits filing for a Chapter 7 bankruptcy more than once every eight years,” he said.