Meeting of Creditors Tag

29 Dec Why Do Creditors Rarely Show Up at Chapter 7 341 Hearings?

Today, December 29, 2009, was a cold and miserable day in Atlanta, Georgia. Unfortunately I had a Chapter 7 bankruptcy 341 hearing to attend at the federal courthouse in Atlanta. I bundled up the best I could, took the train to the nearest stop - about 1/2 a mile from the courthouse - and braved the cold windy weather. As my client and I sat and waited for our case to be called, I noted case after case was called and heard by the trustee and that in none of them during my hour stay did any creditor show up. My client seemed surprised by this - he was expecting to see representatives from several of the more aggressive credit card lenders who had been harassing him. In fact, creditors rarely appear at Chapter 7 341 hearings - at least that is the case here in the Northern District of Georgia. Why? There is little that creditors can do at these hearings. In the Atlanta district, Chapter 7 341 hearings are scheduled at the rate of 5 to 7 every 30 minutes. This means that the Chapter 7 trustee will devote all of 5 minutes to any one case. Creditors who are familiar with the process don't bother - knowing that there is not time to ask any significant questions, and creditors who are not familiar with the bankruptcy process will find themselves cut off by the trustee after just a few questions.
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