Bankruptcy law requires a "meeting of creditors" which is usually held 4-to-6 weeks after the case is filed. Clients often worry about this meeting, fearing that it will be in a courtroom with judges and attorneys, and that they will be attacked and belittled by their creditors. This couldn't be further from the truth. In fact the creditors rarely if ever show up.
The purpose of the meeting of creditors is to allow the bankruptcy filer to be questioned about their debts, income, and assets. A Trustee is assigned to your case to review your filing and ask you relevant questions. This Trustee is an attorney, and they basically sit in the place of your creditors. The meeting is held in an office, not a courtroom. There are no judges present. While the meeting of creditors will require you to testify under oath, it is rarely an adversarial proceeding. There is no harsh "cross-examination." It is primarily held for informational purposes to review what your attorney has filed.
So, why don't the creditors show up? Because the Trustee sits in their place to review their interests and determine if any money or assets are available for the creditors. With hundreds of thousands of cases filed each year, even major credit providers would not be able or willing to hire individual attorneys, at $200+ per hour, to attend these meetings. This is especially true with the Trustee taking their place. If the Trustee believes there are assets to pay the creditors, he or she will be responsible for going after it and dispersing the funds. It would not be cost effective for each creditor to do this on their own. It's is very rare when they do. In short, creditors do not show up because it is not worth their time and money.
Creditors do sometimes appear, nonetheless. These are almost always "unsophisticated" creditors. This simply means creditors who do not know the bankruptcy process. This may include landlords or individuals (non-corporations) who the debtor owes money to. Even if they do show up, they will be limited to asking questions related to the bankruptcy position. Many who show up only do so because they received notice saying they should show up. It will rarely be a problem for the case going forward.
Contact us if you have any questions about the bankruptcy process. I will be happy to set up a free consultation to discuss your situation.