ID in Post-COVID Bankruptcy

The 341 meeting of creditors is a required part of completing bankruptcy. At this meeting you must answer questions asked by a trustee assigned to your case. Occasionally, but rarely, creditors will appear at the meeting to ask you questions as well.

These meetings were previously held in-person at various locations. However, since the beginning of the COVID-19 pandemic, the meetings have occurred virtually over the phone and on Zoom. Chapter 7 bankruptcy meeting of creditors now occur over the phone, while Chapter 13 bankruptcy meeting of creditors occur via Zoom teleconferencing. In either case, your attorney will provide you with the links necessary to join the meetings.

In almost every way the meetings are conducted the same as they were when they were done in person. The trustee swears you in, you attorney enters their appearance, and the trustee asks you a series of questions. One thing that has changed is that your bankruptcy attorney must now identify you using your Social Security card and a valid state photo ID. Previously, these documents were reviewed and verified by the trustee assigned to the case. Now, you must provide these documents to your bankruptcy attorney so that he or she can verify them for the trustee.

Most trustees will accept an unredacted W-2 in lieu of your original Social Security card. State photo IDs can include drivers licenses, military IDs, and state issued IDs. Things such as membership cards with a photo are generally not excepted. They must be state issued.

Your attorney should go over all of the steps necessary to join the virtual meeting of creditors and prepare you for all the questions that will be asked. If you have any bankruptcy or credit related issues, call us at 412-414-9366. I will be happy to set up a free consultation to discuss your situation!

Why Don't Creditors Appear at the "Meeting of Creditors"?

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.

What Happens After The Bankruptcy Meeting of Creditors?

I have discussed the bankruptcy Meeting of Creditors in some previous posts, including it's purposes and procedure. The Meeting of Creditors is very straightforward. The trustee assigned to your case reviews your petition, your income and expenses, and your property and debts. He or she verifies you are being truthful and thorough, and they also recommend (or object to) your case being discharged. But, your case is not quite complete when the Meeting of Creditors is over. There are still a few things to keep in mind.

I will mostly discuss what happens after the Meeting of Creditors in a Chapter 7 case. The Chapter 13 case typically lasts 3 to 5 years, so the time after the meeting is much greater, and the continued case is more complex. A Chapter 13 Meeting of Creditors is more of a beginning to your case than an end. There is still a lot to do.

The Chapter 7 Meeting of Creditors, on the other hand, signifies that your case is almost complete. The Chapter 7 discharge is usually official 60 days after the Meeting of Creditors. While you do not need to do anything yourself to bring about the discharge, you should keep an eye out for the notice in the mail. If you have not received it within 90 days, give your attorney a call. You should keep your discharge notice on file in case a creditor ever attempts to collect in the future. You may also need the notice of discharge in order to get student loan companies to accept your payments after bankruptcy (creditors are not allowed to attempt to collect from you while you are in bankruptcy, and some will want proof). So, keep an eye out for this discharge notice.

A responsibility you will need to remember after the Meeting of Creditors is to complete the second course, also known as the Financial Management Course. My office will order this course for you, but you will need to complete it over the phone or internet within 60 days of the Meeting of Creditors. Your case will be dismissed if you fail to do so, and you will be required to re-file EVERYTHING, with additional legal fees and costs. It's easy enough to complete, so there is no reason to take any chances... get it done as soon as possible. The consequences of not doing it are too great.

One final thing to keep in mind after the Meeting of Creditors is that you must notify your attorney of any inheritances, lawsuits settlements, insurance claims, or lottery winnings in the 6 months after your case is discharged. In some rare situations, creditors can make claims for a piece of this windfall. These situations are rare, but keep your attorney updated.

In every case, you should not transfer any property or take out any loans until your case is discharged. Your creditors will have the option of objecting to your discharge until 60 days after the Meeting of the Creditors, so it is safest to take no actions during this period, at least without consulting your attorney. I always tell my clients not to do anything there were told not to do in the months leading up to bankruptcy. Better safe than sorry.

Contact us if you have any questions about the Meeting of Creditors, or the period afterwards. There isn't much to do, but you should still be vigilant. Your case will almost be complete, there is no reason to needlessly raise an issue.

Getting Ready For The Meeting of Creditors

My clients are often anxious about their bankruptcy Meeting of Creditors. This is understandable, as the process is new and unknown to them. However, a little preparation beforehand can greatly reduce the anxiety by making it clear that the process will go smoothly. What exactly do you need to know about your Meeting of Creditors? Here are some simple tips.

First, you will need to know the location and time of the meeting. This will be mailed to you by the Court, in the form of the Meeting of Creditors Notice. If you do not receive this notice within a few weeks of filing your case, contact your bankruptcy attorney. The location will be determined by your county of residence at the time of filing, and the date is usually 4 to 6 weeks after filing. It is important to schedule appropriately once you receive this date, as you may need to miss work or school, or get a babysitter. You'll have plenty of time to do so, but if you fail to appear twice, your case may be dismissed. Once again, if you have any questions about the location, contact your bankruptcy attorney immediately.

The second thing you will need to be prepared is a government issued photo ID and your original Social Security card. These are used by the Trustee to identify you, and your Meeting of Creditors will not proceed without them. Make sure you put both pieces of information aside, as failure to do so will lead to a rescheduled meeting, which may result in additional legal fees.

You may also want to review the information sheet provided by the US Trustees office before your Meeting of Creditors. You will be asked directly if you have reviewed this sheet. Your bankruptcy attorney should review this information with you before filing, which includes filing requirements and information about the different types of bankruptcy. This information sheet should be available at the meeting location if you have not reviewed it beforehand.

If your case is a Chapter 13 bankruptcy, you should also bring proof that you have begun making payments into your plan. This may include a copy of any money order you mailed in on your own, or a recent pay stubs showing the wage attachment being deducted. This shows the Trustee that you are complying with the terms of your plan, and that granting interim confirmation is reasonable.

Finally, each trustee will ask a set of his or her own questions. You should review these questions with your attorney at least once before your meeting date, and on the day of the meeting. Knowing the questions, and how straightforward they are, should greatly reduce your anxiety over the process. The questions differ slightly from trustee to trustee, but an experienced bankruptcy attorney should know exactly what they will ask. Reviewing these questions once last time may also jog your memory of any errors or omissions, of which the trustee should be made aware. If you review the questions beforehand, nothing should take you by surprise on the day of the meeting.

In summary, preparing for your bankruptcy Meeting of Creditors is simple... know the time, date and location. Be familiar with the questions. Have your ID cards. Contact us with any questions about your bankruptcy Meeting of Creditors. It will go more smoothly than you can imagine.

Why Are There No Creditors At The "Meeting of Creditors"?

The prospect of the Meeting of Creditors causes a lot of anxiety for many of my clients. While this is understandable (the process is new to them), it is unfounded. There is very little to worry about during the Meeting of Creditors as long as you are honest and prepared.

A major cause of anxiety is the belief that your creditors will be present, and will cross-examine and grill you. People picture a courtroom setting with a judge and prosecuting attorney. Given the aggressiveness of collection agencies that have hounded them for months and sometimes years, debtors understandably believe a similar attorney will appear in an attempt to intimidate and belittle them. In reality, nothing could be further from the truth.

First of all, there is no judge and no courtroom. The Meeting of Creditors is conducted in a normal office room, in front of a "trustee", who is an attorney appointed to review the case. While there are bankruptcy judges and courtrooms, these only become necessary in complicated and disputed cases. The Meeting of Creditors is a much less formal affair. The trustee sits in the place of the creditors who are owed money, reviews the filing, and asks the debtor some simple questions. Your attorney will be at your side to assist you.

And this brings me to the point of there being no creditors at the Meeting of Creditors. As crazy as it sounds, there is normally no reason for them to show up. First of all, they would need to either hire and attorney or in-house council to appear, which is costly and time consuming. Given the fact that they have little hope of recovering any money in a Chapter 7 bankruptcy, this would be a waste of money for most creditors.

Second, the trustee acts in their place. If the debtor appears to have assets or income sufficient to pay their creditors, the trustee will take action. The trustee will object to the bankruptcy filing if there is anything improper about it. The trustee receives a cut of the recovery, and would thus be motivated to act on their behalf if something is available. With little in the way of rights, and very little chance of recovery, and the trustee sitting in their place, it is extremely rare when a creditor shows up. 

There is also little reason for the creditors to show up in Chapter 13 cases. Once again, there is a trustee sitting in their place. Also, the amount of money there are to be repaid is determined by the claim they file, not by a personal appearance.

The only situation when creditors may (rarely) appear is when they are "unsophisticated creditors". This means they are not a credit card or finance company. An example would be someone included on a personal loan, or an ex-landlord. These individuals know very little about the process, and when they receive a notice saying their rights may be affected, they will sometimes show up. Even then, not knowing anything about the process, they normally have very little to add.

The prospect of the Meeting of Creditors is daunting to many bankruptcy filers, but it should not be! The process is very straightforward, you will be very well prepared by my office, and most importantly, you creditors will likely not be at the meeting of their very name!

Contact us if you have any questions about the Meeting of Creditors in particular, or the bankruptcy process in general.