Return the Dawg Blog

The phrase “Meeting of Creditors” strikes fear into most of my clients’ hearts. They hear these words and get a mental image of sitting in a large, darkened room with a spotlight in their face and their creditors in hooded robes surrounding them.

The reality? In virtually all cases, there’s nothing to worry about. In fact, except in a few types of cases, it is overwhelmingly likely that no creditors will show up. That’s right, In most cases not a single creditor attends the Meeting of Creditors. What are the exceptions?

Firdt of all, you lied on your petition or schedules, gave false or incomplete information, or made other false statements. The Chapter 7 Trustee and U.S. Trustee see thousands of bankruptcy cases each year. Cases that don’t fit together properly stand out like a sore thumb, and it’s likely that you will be questioned closely about your statements. Next, Where you run your own business. In these cases, debt often is higher, and your creditors may be more comfortable in dealing with the bankruptcy system. Even here, however, the primary emphasis is the correctness and completeness of the schedules. And lastly, Where you are involved in a divorce. Here, your soon-to-be-ex-spouse may want to point out errors in your schedules or simply try to embarrass you. ven if a creditor shows up, it’s unlikely that they will ask hard questions. “Why haven’t you paid?” or “When will you pay?”

So what does happen? The Bankruptcy trustee swears you in, verifies your driver’s license and social security card, and then typically confirms, under oath, that all of the information in the schedules is true and correct, that you listed all of your assets and all of your debts. You may be asked why you filed the case, with the answer being just a few general words: job loss, illness, divorce. Depending on the details of your case, you may be asked additional questions about real property, a business, your job, etc.

Some Meetings of Creditors last for only 30 seconds. Others can run longer. The typical meeting is about 3-5 minutes in a Chapter 7 bankruptcy.

Comments Closed

Ever went to bank to apply for a loan? Sam will be doing that today. He wanted to buy a new car which he saw two blocks away from the bank. He already asked the help of the salesman but he figured that as a consumer it is his responsibility to weigh the odds first before making any credit with the car company. He knows these because he was a lawyer. And he is very much aware of the consumer credit act rights and so as to make the best decision, he inquired with banks around the area for a loan . Sam being a well educated man took into consideration the length of the loan as well as the interest to be added on the principal amount. He also tried to check the computation of each loan offers and compared it to the loan offer made by the car company. He noticed slight differences with regards to the interest rates but nevertheless he was satisfied with their offers. After much deliberation, he decided to make a purchase through the company’s loan system. He brought all the documents required and presented it to the manager. He was approved and the car he wanted was released the following day. He was so proud to drive his new car home and show it to his wife. After parking the car in the garage, he called his wife and they both inspected every part of the vehicle. The following day Sam woke up early to wax and clean his new car, he carefully vacuumed the inner carpets, making sure that no dent was given to the newly painted sedan. They both agreed to drop her wife off to work that morning. As he carefully drove the car out of the garage, a kid on a speeding motorcycle hit their bumper. And then a huge dent was there…mad like hell Sam got out of the car, scratched his head remained staring at the dent for minutes. He forgot to pay for the insurance!!!

Comments Closed