When you file bankruptcy whether it is Chapter 7 or Chapter 13, a section in bankruptcy code 11 U.S.C 341 requires you to be present for a meeting with your creditors. This meeting is usually scheduled 30 to 40 days after you or your bankruptcy attorney has filed bankruptcy.

In majority of the cases, creditors are not present for the meeting and even if they are they don’t have the permission to take any action against you right there. And if the creditors don’t attend the meeting, it doesn’t imply that they have no right to collect debts from you. It is more of a “fact finding” meeting. The trustee may ask you few questions. In case the trustee discovers new facts at the 341 bankruptcy meeting, an “adversary proceeding” can be initiated by the creditors or the trustee.

The 341 bankruptcy meeting lasts for few minutes. This is because the trustee may have scheduled approximately 20 to 30 hearings in an hour. The trustee will confirm your name, address, social security number. This is usually done to find out whether you are the one to have signed the documents prior to filing bankruptcy.

In case creditors are present at the meeting, they might ask you few questions too. It is always better to have a legal representation when you file bankruptcy. And just as your bankruptcy attorney supervised bankruptcy filings, he will essentially be present at the 341 bankruptcy meeting too.

According to the new federal bankruptcy laws, filing bankruptcy has become a tough job and you need to take credit counseling session before you file bankruptcy. A credit counselor approved by the government is eligible for giving the credit counseling lessons.

Majority of the consumers usually opt for Chapter 7 or Chapter 13 bankruptcy. The new federal bankruptcy laws that were introduced on 17th October 2005, requires you to undertake a Means test if you intend to file Chapter 7 bankruptcy.

Chapter 7 bankruptcy also known as “liquidation” liquidates your non-exempt assets to pay off your creditors. In case of Chapter 13 bankruptcy, you get a repayment plan according to which you can pay off your debts. Whether you file Chapter 7 or Chapter 13 bankruptcy, it stays in your credit report for a period of 7 to 10 years.