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Chapter 7 Bankruptcy and The Creditors Hearing

1. What is the Creditors Hearing?
The Creditors Hearing, commonly referred to as “the 341”, is a required hearing that takes place after your bankruptcy case is filed with the Alexandria, Virginia bankruptcy court. At this hearing, a bankruptcy trustee will be asking you a series of questions that relate to your case. As your bankruptcy attorney, I will of course be there with you as well on that day.

2. Who is the bankruptcy trustee and what’s with all the questions?
The bankruptcy trustee is a lawyer who represents the interest of your unsecured creditors. The trustee’s job is to ensure that you have truthfully disclosed all information on your bankruptcy petition and that you do not have any non-exempt assets that can be seized and liquidated on behalf of your unsecured creditors. The trustee is looking to see if there is any property/equity that you have inadvertently “forgotten about.”

3. What kind of questions will the bankruptcy trustee ask me? Will I have to prepare?
Each trustee asks virtually the same kinds of questions during each hearing. For example, have you listed all your assets? Have you listed all your creditors? NOTE: As your bankruptcy attorney I will ensure that you know in advance what questions you will be asked. Prior to my clients’ hearing, I send them a document that lists all of the questions the Alexandria bankruptcy trustee will ask of them. In addition, my client and I go over the questions so that there are no surprises.

4. When does the Creditors Hearing occur?
Here in Alexandria, Virginia the hearing takes place about 4 to 5 weeks after your case gets filed with the court. After your case has been filed, the computer determines the date and time of the hearing.

5. Will I be going to court that day?
No, you will not. Please do not make the mistake of visiting the bankruptcy court in Alexandria. The hearing is not a formal court proceeding and will not be taking place at the bankruptcy courthouse.

6. Where does the hearing take place?
For Northern Virginian residents who file their chapter 7 case with the Alexandria Bankruptcy Court, the creditor’s hearing takes place at 115 South Union Street, Suite 206, Alexandria, Virginia 22314. Check out the Google map below for directions. In addition, please find a photo taken by my professional photographer, my wife, of what the building looks like. Just head to the 2^nd floor.

View Larger Map

7. Where will I park?
While there are several parking garages in the area, as well as metered parking on King Street, I recommend that you take advantage of the free 2 hour parking on Prince Street and Cameron Street, located just a couple of blocks to the left and right of the building. See map above. Oh, and by the way, I have very few talents, but one of them is an uncanny ability to parallel park a car into the tightest of spots, so let me know if you need some help parking.

8. I just realized that the building is located about 15 blocks from your office. Would you like ride to the hearing Mr. Brandt?
That’s very nice of your to ask, but on nice days, meaning under 90 degrees and above 30, I like to walk there and get some air.

9. How long is the Crediotrs Hearing?
The waiting time can be anywhere from 5 minutes to 1 hour. The hearing itself however, typically last no more than 1 minute.

10. In what order will my case be called?
The higher caliber your attorney is, the quicker your case will be heard. Kidding! The order is determined by the computer system. It is just a matter of luck. Your case could be the first one on the docket or you could be the very last. For Northern Virginia residents, the one exception is chapter 7 trustee Jason Gold who requires you to fill out a questionnaire. To serve as an incentive to be prompt and prepared, Trustee Gold calls the cases in the order that the questionnaire was turned in to him on the day of the hearing.

11. How should I dress for the Creditors Hearing?
Like I said, the Creditor’s hearing does not occur at court so there is no need for a suit. I would recommend business casual.

12. Will my creditors be at the hearing?
Highly unlikely. Despite the name, creditors rarely appear at hearings. Barring a particular thorny issue in your case, only the trustee will be there to ask you some questions.

13. What documents do I need to bring to the hearing with me on that day?
DRIVER LICENSE AND SOCIAL SECURITY CARD. Please do not forget these items as that can cause your case to be reconvened to a later time. Do you really want to come back for this thing again?!

14. Should I be worried about the Creditors Hearing?
No. I know you may be thinking, “That’s easy for you to say,” but upon exiting the hearing, most of my clients say to me, “Is that it?” Do you know how sometimes in life you can make something in your head a bigger deal than it actually is? Well, this is one of those times.

15. What if I forget to show up at the hearing?
Failure to show can result in your case being dismissed! Please, if you are going to be late (which you should not be) call.

16. The hearing ended. Now what happens?
Now, we go next door to grab a cup of coffee and a croissant to celebrate. Although your case is still pending, the hardest part is behind you. Barring something unusual like an objection from a creditor, within 60 to 80 days you will receive your letter of discharge. This is an order from the bankruptcy court that states that your debts have been forgiven. Now, you can really celebrate! J

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This entry was posted on Thursday, July 29th, 2010 at 10:22 am and is filed under Creditors Hearing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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