What to Expect at the Meeting of Creditors

Everyone who files bankruptcy must attend a meeting of creditors.  When I explain this necessity to my clients, some of them are understandably nervous about what to expect at such a meeting.  Not to worry, the meeting of creditors is no big deal if you have some idea what it's about.  First of all, "meeting of creditors" is something of a misnomer as very rarely do any creditors show up.  Instead, the people who are present are usually you (and your spouse if a joint filing), your attorney, maybe another ten or so people who are also filing bankruptcy and their attorneys, and finally the trustee.  The meeting is held in an office rather than a courtroom.  There is no judge present (the trustee is not a judge-just a court-appointed lawyer who has the job of making sure the paperwork is in order).  The trustee will call off the names of everyone who is scheduled to appear, give a little introductory statement about how he is going to conduct the meeting, and then call the first case.  When your case is called, you and your attorney go and sit near the trustee at a desk.  The first thing you do is hand over your picture ID, proof of SSN, last paycheck you received, and a bank statement showing what was in your account on the date you filed.  Some trustees want some additional documents but your attorney will go over that with you before hand.  Then the trustee will ask you a handful of very simple questions like, "State your name and your address.  Did you read and sign the bankruptcy papers your lawyer prepared?  Does it list all of your assets and debts?  Do you need to make changes?"  That's usually it.  Occasionally the the trustee will question you about a particular debt or piece of property.  The questioning on average lasts less than three minutes and you're done.  See, nothing to worry about!

Putting a Pay Day Loan into Bankruptcy.

As the economy continues to sputter and money remains tight for everyone, even creditors seem to be feeling the pinch.  Some of these creditors who are short of cash are resorting to lying about whether the debt you owe them can be put into bankruptcy.  Pay day lenders seem to be the main culprit in this area.  When my clients tell a pay day lender who keeps calling to collect that they are going to file bankruptcy, the pay day loan rep will say, "You can't put our loan in bankruptcy!"  Some pay day lenders will even make you sign a document when you get the loan where you promise not to put that loan in bankruptcy.  Don't worry about those tactics.  It's not true; it's just a ruse designed to get you to pay them.  Pay day loans, like medical bills and credit cards, are all considered unsecured debts that are easily discharged in a bankruptcy.    The only exception would be if you obtained the pay day loan during the period of time right before you filed bankruptcy.  If that's the case, talk to your lawyer about whether your pay day loan can be discharged in your bankruptcy.