A meeting of creditors is a meeting convened and presided by the United States trustees in a bankruptcy case. A meeting of creditors is regulated under Section 341 of Title 11 U.S. Code, and which is why this meeting is also called a “341 meeting”.
The purpose of a meeting of creditors is for the bankruptcy trustees to confirm that accuracy of the documents filed with the court by the debtor, and to detect possible bankruptcy fraud.
The meeting of creditors is usually held a period, such as a month, after the debtor files for bankruptcy. The creditors don’t have to attend a meeting of creditors, but if they attend, they can ask questions. However, the debtor’s appearance is mandatory.
The trustees will try to prevent bankruptcy fraud by determining whether there are any assets that are not protected through exemptions. Generally, a meeting of creditors is short, even within 10 minutes.
After the meeting of creditors, if all questions have been asked and answered, the bankruptcy proceeding will automatically proceed to a discharge of debt in most cases.
[Last updated in August of 2020 by the Wex Definitions Team]