Manadatory Trustee Meetings
A Sacramento bankrutpcy lawyer talks about manadatory trustee meetings
The Bankruptcy Code requires anyone filing for debt relief under Chapter 7, Chapter 13, or Chapter 11 to attend a mandatory meeting called the First Meeting of Creditors. The basic purpose of this meeting is for the trustee appointed to the case to examine the person or business filing for bankruptcy.
The purpose of the examination is to review the petition and validate any nonexempt equity or any prepetition transfers. If the petition states that there is nonexempt equity or prepetition transfers the trustee's job is easy and he will verify whether there are any assets for liquidation and distribution to creditors. If there is then he will file a notice of assets and invite creditors to file claims against the estate.
The trustee will also use the meeting as an examination to determine whether there are assets or transfers not listed on the petition.
Those appearing at the First Meeting of Creditors are under oath and must tell the truth under penalty of perjury. If there are assets or transfers not listed on the petition then two things must be done: 1) the attorney must amend the schedule disclosing the asset or transfer; 2) the trustee will give notice to creditors of unlisted assets.
The trustee will also use the meeting to see whether the attorney prepared the petition with accuracy. Those attorneys performing their due dilligence and fully disclosing the filer's assets and liabilities will be done at the meeting. Those attorneys who fail to list assets or debts will have to correct the mistake and come back a second time.
File your case with an attorney and get everything correct the first time.
