The 341 Meeting

(a/k/a The First Meeting of Creditors)

Having filed your petition in bankruptcy, the next step is a meeting with your trustee. The meeting is known as the first meeting of creditors or, simply, the 341 meeting because it is held pursuant to section 341 of the Bankruptcy Code. It will be scheduled by the court. At the meeting the trustee will conduct an examination of you under oath and creditors are invited to attend and ask questions (although few do). What type of questions will the trustee ask? Read on.

The trustee is required to make the following statements and ask the following questions:

1. State your name and current address for the record.

2. Please provide your picture ID and social security number
card for review.

a. If the documents are in agreement with the � 341(a) meeting notice, a suggested statement for the record is:

"I have viewed the original state of ________ drivers license (or other type of original photo ID) and original social security card (or other original document used for proof) and     they match the name and social security number on the � 341 (a) meeting
notice."

b. If the documents are not in agreement with the 341(a)
meeting notice, a suggested statement for the record is:

"I have viewed the original social security card (or other
original document used for proof) and the number does not match the number on the � 341(a) meeting notice. I have instructed the debtor (or debtor's counsel) to submit to the court an amended
verified statement by [date], with notice of the correct number to
all creditors, the United States Trustee, and the trustee, and to file
with the court a redacted copy of the notice, showing only the last
four digits of the social security number, and a certificate of
service."

c. When the documents do not match the petition, the trustee
shall attempt to  ascertain why, and shall report the matter to the United States Trustee.

d. If the debtor did not bring proof of identity and social
security number, the trustee shall determine why.

3. Did you sign the petition, schedules, statements, and
related documents and is the signature your own? Did you read the petition, schedules, statements, and related documents before you signed them?

4. 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 my attention at this time?

5. Are all of your assets identified on the schedules? Have
you listed all of your creditors on the schedules?

6. Have you previously filed bankruptcy? (If so, the trustee
must obtain the case number and the discharge information to determine the debtor(s) discharge eligibility.)

7. What is the address of your current employer?
 

8. Is the copy of the tax return you provided a true copy of
the most recent tax return you filed?
 

9. Do you have a domestic support obligation? To whom?
Please provide to me the claimant's address and telephone number, but do not state it on the record.

10. Have you read the Bankruptcy Information Sheet provided
by the United States Trustee?

The following are questions the trustee may ask. The list is not exhaustive and if the trustee smells a hidden asset or a lie or two he or she may go well beyond the suggested questions.

1. Do you own or have any interest whatsoever in any real
estate? If owned: When did you purchase the property? How much did the property cost? What are the mortgages encumbering it? What do you estimate the present value of the property to be? Is that the whole value or your share? How did you arrive at that
value? If renting: Have you ever owned the property in which you
live and/or is its owner in any way related to you?

2. Have you made any transfers of any property or given any
property away within the last one year period (or such longer period as applicable under state law)? If yes: What did you transfer? To whom was it transferred? What did you receive in
exchange? What did you do with the funds?

3. Does anyone hold property belonging to you?
If yes: Who holds the property and what is it? What is its
value?

4. Do you have a claim against anyone or any business?
If there are large medical debts, are the medical bills from
injury? Are you the plaintiff in any lawsuit? What is the status of each case and who is representing you?

5. Are you entitled to life insurance proceeds or an inheritance as a result of someone's death? If yes: Please explain the details.
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)

6. Does anyone owe you money? If yes: Is the money collectible? Why haven't you collected it? Who owes the money and where are they?

7. Have you made any large payments, over $600, to anyone in
the past year?

8. Were federal income tax returns filed on a timely basis?
When was the last return filed? Do you have copies of the federal income tax returns? At the time of the filing of your petition, were you entitled to a tax refund from the federal or state government ?
If yes: Inquire as to amounts.

9. Do you have a bank account, either checking or savings?
If yes: In what banks and what were the balances as of the
date you filed your petition?

10. When you filed your petition, did you have: a. any cash on hand? b. any U.S. Savings Bonds? c. any other stocks or bonds?
d. any Certificates of Deposit? e. a safe deposit box in your name or in anyone else's name?

11. Do you own an automobile? If yes: What is the year, make, and value? Do you owe any money on it? Is it insured?

12. Are you the owner of any cash value life insurance policies?
If yes: State the name of the company, face amount of the
policy, cash surrender value, if any, and the beneficiaries.

13. Do you have any winning lottery tickets? (Trustees seem to be asking if you anticipate any lottery winnings within the next 6 months after the petition date. If you can predict that, then we have to talk.)

14. Do you anticipate that you might realize any property, cash or otherwise, as a result of a divorce or separation proceeding?

15. Regarding any consumer debts secured by your property,
have you filed the required Statement of Intention with respect to the exemption, retention, or surrender of that secured property? Please provide a copy of the statement to the trustee. Have you
performed that intention?

16. Have you been engaged in any business during the last
six years? If yes: Where and when? What happened to the assets of the business?

In cases where debtors are engaged in business, the
following questions may be asked:

1. Who was responsible for maintaining financial records?

2. Which of the following records were maintained?

a. Cash receipts journal
b. Cash disbursements journal
c. General journal
d. Accounts receivable ledger
e. Accounts payable ledger
f. Payroll ledger
g. Fixed asset ledger
h. Inventory ledger
i. General ledger
j. Balance sheet, income statement, and cash flow statements
 

3. Where are each of the foregoing records now located?
 

4. Who was responsible for preparing financial statements?
 

5. How often were financial statements prepared?
 

6. For what periods are financial statements available?
 

7. Where are such financial statements now located?
 

8. Was the business on a calendar year or a fiscal year?
 

9. Were federal income tax returns filed on a timely basis?
When was the last return filed?
 

10. Do you have copies of the federal income tax returns?
Who does have the copies?
 

11. What outside accountants were employed within the last
three years?
 

12. Do you have copies of the reports of such accountants?
Who does have copies?
 

13. What bank accounts were maintained within the last three
years?
 

14. Where are the bank statements and canceled checks now
located?
 

15. What insurance policies were in effect within the last
year? What kind, and why?
 

16. From whom can copies of such insurance policies be
obtained?
 

17. If the business is incorporated, where are the corporate
minutes?
 

18. Is the debtor owed any outstanding accounts receivable?
From whom? Are they collectible?

19. Is there any inventory, property, or equipment remaining?

Again, the list is not exhaustive, but it should give you an idea of the questions a trustee may ask.