When you file for Chapter 13 bankruptcy, you will complete a plan to payoff creditors. This Chapter 13 Plan is filed with the court in a bankruptcy petition and schedules. About a month or so after your Chapter 13 case is filed, you will attend a hearing with the bankruptcy trustee.
The hearing before the Chapter 13 bankruptcy trustee is called a Section 341 Meeting or the First Meeting of Creditors. A notice about the meeting is mailed to all your creditors to invite them to attend. Most of the time no creditors show up, and the hearing will be conducted entirely by the trustee.
When you attend the hearing, you will need to bring photo identification and your social security number along with pay stubs, tax returns for the past two years, vehicle title, retirement account statements and a current bank statement. The Trustee may also ask for other pertinent documents.
The bankruptcy trustee will swear you in and ask questions about your bankruptcy petition, debts, assets and other financial matters. You will testify under oath that the list of assets and property provided to the court is complete.
When the Trustee is done asking questions, any creditors who appear will have the chance to ask you questions. Sometimes no creditors appear and they are not required to do so by law. As the debtor, you must appear or your case might be dismissed.
If a creditor objects to your Chapter 13 bankruptcy, they will file an “objection of confirmation”. These objections are uncommon and usually related to insurance on secured collateral such as a house or vehicle.
After the Section 341 Meeting, the Trustee may have objections. Typical objections include lack of funding for the Chapter 13 plan and differences in hearing testimony versus the facts scheduled in the bankruptcy petition.
After the meeting of creditors, the court schedules a Hearing on Confirmation. This hearing is when the judge formally approves your Chapter 13 Plan; without this approval, your case is in limbo. The hearing is held in court, but typically lasts for just a few minutes. Your lawyer will often iron out any issues prior to the hearing, paving the way for Chapter 13 success.
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