# 341 Meeting: What It Is, How It Works, Example

> **Definition**
>
> After you've filed for bankruptcy, there are several steps before the judge's decision. One of the first is the 341 meeting, or meeting of creditors. In this meeting, you'll meet with your case trustee and creditors to establish the facts of your case prior to appearing before a judge.

## What Is a 341 Meeting?

The term “341 meeting” refers to a meeting between creditors and debtors that is required to take place during a [Chapter 7 bankruptcy proceeding](https://www.investopedia.com/terms/b/bankruptcy.asp). Accordingly, its name is derived from section 341 of the bankruptcy code. A 341 meeting is typically scheduled roughly one month after a debtor files for bankruptcy.

### Key Takeaways

*   A 341 meeting is intended to establish the facts of the bankruptcy in question and to facilitate the negotiation of a repayment plan between the debtor and their creditors.
*   The meeting must include both the individual filing for bankruptcy and the court-appointed bankruptcy trustee to be considered legally valid.
*   Generally, 341 meetings occur at the offices of the trustee, rather than in a courtroom.

## How 341 Meetings Work

The 341 meeting is one of many stages involved in declaring [Chapter 7](https://www.investopedia.com/terms/c/chapter7.asp) bankruptcy in the United States. Its primary purpose is to establish the facts of the bankruptcy in question and to ensure that all the paperwork necessary to carry out the bankruptcy proceedings is in order. Although the attorneys of the [debtor](https://www.investopedia.com/terms/d/debtor.asp) and [creditor](https://www.investopedia.com/terms/c/creditor.asp) are welcome to attend, the only parties whose presence at the 341 meeting is legally required are the debtor in question and the court-appointed [bankruptcy trustee](https://www.investopedia.com/terms/b/bankruptcy-trustee.asp).

Prior to the 341 meeting, the trustee would have already reviewed the bankruptcy paperwork and [financial records](https://www.investopedia.com/articles/basics/06/financialreporting.asp) submitted by the debtor. The purpose of the 341 meeting, therefore, is principally for the trustee to confirm the facts stated by the debtor and to collect any additional paperwork that may be required. In the event that the debtor is attempting bankruptcy [fraud](https://www.investopedia.com/terms/f/fraud.asp), this would likely be detected by the trustee during or prior to the 341 meeting.

From the debtor’s perspective, the objective of the 341 meeting is to provide the necessary documents in order to prove that their identity is authentic, while also establishing their current [assets](https://www.investopedia.com/terms/a/asset.asp), [liabilities](https://www.investopedia.com/terms/l/liability.asp), income, [expenses](https://www.investopedia.com/terms/e/expense.asp), and other relevant financial circumstances. If the creditors are in attendance, they will be able to ask clarifying questions, such as whether the debtor is entitled to any upcoming income sources (e.g., [tax rebates](https://www.investopedia.com/terms/t/taxcredit.asp) or [inheritances](https://www.investopedia.com/terms/i/inheritance.asp)) or owns undisclosed assets, such as shares in a private business or assets held overseas.

> **Important**
>
> Typically, discussion at 341 meetings will center on how the debtor plans to eventually repay their obligations.

## Real World Example of a 341 Meeting

Robin is a bankruptcy trustee currently presiding over a 341 meeting. The debtor, who declared bankruptcy over a $5,000 debt, attended the meeting along with their bankruptcy lawyer. Likewise, the creditor and their lawyer are also present.

Robin's priority is to verify the debtor's identity and financial status. Although Robin had already reviewed many documents prior to the meeting, the 341 meeting provided an occasion to ask follow-up questions about the documents provided and obtain any additional disclosures deemed necessary. In the unlikely event that the debtor attempted bankruptcy fraud, this would also likely be detected due to discrepancies or inadequacies in the documents provided.

During the meeting, the lawyers for the debtor and creditor engaged in a detailed conversation regarding the debtor’s assets, liabilities, and income sources. They were able to negotiate a general plan for the gradual repayment of the outstanding debt. As is the case with most 341 meetings, the meeting took place at Robin's office rather than in court before a judge.

> **Fast Fact**
>
> Declaring bankruptcy can help borrowers avoid the worst repercussions of failing to repay their debt, but the impact on their credit score can be severe. If you're struggling to pay back your loans, consider working with a debt relief company or credit counseling agency before filing for bankruptcy, which becomes your only viable option.

## What Happens if I Don't Come to My 341 Meeting?

According to the U.S. Bankruptcy Code, your [bankruptcy petition may be dismissed](https://www.investopedia.com/terms/i/involuntary-bankruptcy.asp) if you fail to appear at your 341 meeting. If you are married, both spouses must attend the meeting.

## When Does a 341 Meeting Take Place?

A 341 meeting typically occurs between 21 and 50 days after the initial bankruptcy filing. This gives the trustee time to review all the submitted documents and conduct any needed research.

## Who Is Present at a 341 Meeting?

The trustee on the case calls a 341 meeting, which should be attended by any parties seeking bankruptcy protection and their lawyers. Additionally, creditors may attend to ask the debtor about their assets and attempt to work out a plan for debt repayment.

## The Bottom Line

A 341 meeting allows the trustee overseeing a bankruptcy filing to meet and talk with the filers. It's an excellent opportunity to get a more personal take on their financial situation and perhaps work out a repayment plan prior to meeting with the judge.  

> **Article Sources**
>
> 1.  U.S. Government Printing Office. "[11 U.S.C. 341 -- Meetings of Creditors and Equity Security Holders](https://www.govinfo.gov/app/details/USCODE-2022-title11/USCODE-2022-title11-chap3-subchapIII-sec341)."
>     
> 2.  United States Bankruptcy Court. "[What Is a 341(a) Meeting of Creditors?](https://www.canb.uscourts.gov/faq/general-bankruptcy/what-341a-meeting-creditors)"