These are the Trustee questions at a Chapter 7 bankruptcy 341 meeting of creditors. The Trustee will already have the documents you gave us. He reviews your bank statements and taxes to ensure you didn’t give creditors or family money or assets just before filing. He will also review the mortgage and car titles to make sure liens are correct. Also, please note that it is rare, but the property may belong to him if the bank didn’t file their lien correctly.
Trustee Questions at the Bankruptcy 341 Meeting
These are the Eastern District Chapter 13 hearing questions. Ms. Burden requests that your attorney asks the questions. Mr. Keats is a Chapter 7 Trustee in the Western District. The questions they ask you might vary from Trustee to Trustee and from Chapter 7 to Chapter 13. Here is Mr. Keat’s standard Chapter 7 341 hearing questions for the Western District of Kentucky. You will find a list of the usual questions from the US Trustee’s office other jurisdictions at the bottom of this post.
⎆ If you have a secured creditor before the 341 meeting, do the following:
- Ask your lender to send a reaffirmation to us. Now is the time to sign and file it.
- If you owe a lot more than what your car is worth you might file a motion to redeem and buy it for what it is worth.
- If you need to surrender property a creditor may appear at the hearing to set a time and place to pick up a car. Often they don’t appear and may not pick it up for months. Sometimes they never pick up a car worth less than 3,000.
⎆ Finish your debtor education class now and bring your photo id and social security card.
First, you must finish your debtor education class before the hearing. People often forget to take this class and delay till the last minute. Make this mistake and it may cost you over 600 dollars or worse. Be sure to bring your social security card with you to court, or they will not hold your hearing. If you put the judge and Trustee through additional trouble it will cost you.
⎆ What the 341 Hearing is about.
The 341 hearing is much easier if you know what questions they will ask you. Interestingly, there are requirements of questions for the Trustee to ask. First, he can ask for any relevant documents about your finances and transfers of property. Of course, the purpose of 341 meetings is to ensure the petition is accurate and that you have listed all the property, debts, transfers, income, and expenses. Again, the “Deserving Debtor” has a duty to make his best efforts to repay and to prepare an accurate petition. Therefore, by completing your duties you are rewarded by obtaining the discharge and a budget you can live on.
Prepare a neat and accurate petition. Do not transfer property or repay mom just before filing. Don’t use a cheap, uncaring, or unqualified attorney. Trustees don’t care if you are a widow with 3 orphans or if it is your disabled brother’s home. They make 25% if they can take it. Use a qualified lawyer and read the book so you don’t lose the property.
⎆ How the Trustee is paid.
The Trustee earns about 25% of anything he can take from the Debtor. In addition, there is a sliding scale for funds paid to creditors. Then, he is paid about $60 dollars for conducting the hearing. If he also has to conduct a hearing twice you increase his work. He can also recover money and property from creditors or persons you have given property to.
If you read our website or book, these questions should be easy to answer. Remember, always tell the truth, get an understanding of the law from our website or manual, and prepare an accurate petition. Our website is designed to help deserving people. Be sure to share the materials on Facebook, Pinterest, Twitter, etc, and leave us a nice review if we did a good job. If you have a suggestion let us know.
⎆ Trustee questions for your attorney at the beginning of the hearing.
- Have you personally verified the debtor’s identity today and their identification documents?
- What documents did you look at?
- Were those documents original documents?
- Do those documents match the name of the debtor and identification number that appear on the Notice of Meeting of Creditors?
- He may then ask your attorney to show the Debtor the Debtor’s signature on the schedules.
⎆ Trustee questions for the debtor at the bankruptcy 341 meeting of creditors.
- Please state your name, and address for the record. I will need to see your photo id and proof of your social security number.
- Have you read the Bankruptcy Information Sheet provided by the United States Trustee?
- Did you review and sign the petition, schedules, statements, and related documents you filed with the court?
- Are you personally familiar with the information contained in the petition, schedules, statements, and related documents?
- To the best of your knowledge, is the information contained in the petition, schedules, statements, and related documents true and correct?
- Are there any errors or omissions to bring to me, or the court’s, attention at this time?
- Are all of your assets and creditors listed in the schedules?
- Have you filed bankruptcy before?
⎆ Bankruptcy 341 meeting of creditors optional questions.
- Have you sold or transferred any property away within the last two years. What was it worth, who did you sell it to, what did you get with the money and what did you do with the money you received?
- Is anyone holding property belonging to you?
- Do you have a claim against anyone or any business?
- Have you been injured and can you sue for any injury? If you have and you have sued what is the status of that case and who is your lawyer?
- Are you entitled to life insurance or an inheritance?
- If you become a beneficiary of anyone’s estate within six months of the date your bankruptcy petition was filed, the Trustee must be advised within ten days through your counsel of the nature and extent of the property you will receive. FRBP 1007(h)
- Have you transferred or sold anything over $600, to anyone in the past year? If so to whom?
- Do you anticipate that you might realize any property, cash or otherwise, as a result of a divorce or separation proceeding?
⎆ More questions about the existence and value of assets.
- Do you own or have any interest in any real estate? When did you purchase your property and what did you pay for it? How did you determine it’s value. What mortgages are on it?
- Does anyone owe you money?
- Please produce copies of the state and federal tax returns for the last 2 years. If you have a pending refund coming to you the Chapter 7 trustee in Indiana may want it. The year after you file a Chapter 13 in Kentucky you will lose that refund and all other refunds until your Chapter 13 ends.
- What was the bank balance on the date of your filing?
- What is the value of your car, what do you owe on it, and is it fully insured?
- Do you own any life insurance with a cash value?
- Do you have any winning lottery tickets?
- What businesses have you operated?
- Do you understand what reaffirmation and redemption are? If you are going to reaffirm a debt which debt will you reaffirm?
⎆ Bankruptcy 341 meeting of creditors business questions.
- Where are the financial records?
- Were they properly prepared and maintained?
- Who prepares and possesses the business financial records?
- Do you have the reports from the accountants? If not where are they?.
- What records were maintained?
- What years or periods were they prepared?
- Please produce the income tax returns for the business?
- What accountants were employed?
- You may have to produce the bank account statements and canceled checks?
- Please produce the insurance policies?
- Are there any accounts receivable? Who owes the money for the business. Can it be collected?
- Please produce any corporate minutes?
- What inventory or property remains?
If you are thinking about filing bankruptcy, don’t delay because timing is crucial. I am here to help you. So, contact my office right away to start the conversation. Nick C. Thompson, Bankruptcy Lawyer: 502-625-0905