posted by Divina Westerfield on Oct 15
Your bankruptcy petition is filed and now you have received your notice of your 341 hearing. Let me put your mind at ease, as 341 Hearings are the easiest hearings at which to appear, but mind you, you must prepare. Here is our list of how to prepare for your 341 Hearing:
1. Double check your hearing date and place.
2. Put it on your calendar.
3. Go to http://maps.google.com to be sure you know EXACTLY where the address is located on your hearing notice. In MANY cases you are not going to an actual court room – many bankruptcy hearings are held in office buildings near the courthouse. Figure out your timing to get there and be there no later than 30 minutes before your hearing. Why so early? In many cases, there are cases before your case (unless you are first in the a.m. or after lunch) and you can sit and hear the questions asked of other debtors. Every Trustee (the person who will be asking you questions for the most part) runs their court room differently, so you need to be flexible, but you will be more comfortable if you can see others go through it first. Usually, there is a list of debtor names posted outside the court room. Make sure you have the right place and go in and listen. Luckily, you may be called last if not represented by an attorney, because in many court rooms, trustees give them preference. That will just give you more time to get acclimated.
4. Next gather all your documents you will need and have them ready to go that day:
- A copy you saved of your petition we prepared and you filed with the court clerk;
- All the paperwork received from the Bankruptcy Court, including the Notice of 341 Hearing which has the address;
- Your maps.google.com or mapquest.com directions;
- Money and coins for parking;
- Your official picture ID;
- Your social security card or proof of social security number;
5. So you’re at the hearing room and you are called to the table. You’ll see to whom you will present your picture ID and social security card. If you fail to bring these documents, your hearing will likely be rescheduled. The Trustee will ask you to raise your right hand and take an oath that you are only going to tell the truth, the whole trust, and nothing but the truth under the penalty of perjury. Failing to tell the truth while under oath is a criminal offense. If asked a question, answer verbally as it needs to be recorded, and a head shake will not be sufficient to record your response. The Trustee typically asks the following questions:
- State your name and your current address;
- Please provide your picture ID and Social Security number card for review.
- Did you review and sign the petition, schedules, statements, and other related documents and is that your signature on such documents? Did you read and understand the documents before you signed them?
- Are all of your assets identified on the schedules?
- Have you listed all your creditors on the schedules?
- What is your employer’s address?
- Is the copy of the tax return you provided a true copy of the most recent tax return you filed?
- Have you filed all required tax returns for the past four years?
- Do you own or have any interest whatsoever in any real estate? If owned: When did you purchase the property? How much did the property cost? What are the mortgages encumbering it? What do you estimate the present value ofthe property to be? Is that the whole value or your share? How did you arrive at that value? If renting: Have you ever owned the property in which you live and/or is its owner in any way related to you?
- Have you made any transfers of any property or given any property away within the last one year period (or such longer period as applicable under state law)? If yes: What did you transfer? To whom was it transferred? What did you receive in exchange? What did you do with the funds?
- Does anyone hold property belonging to you? If yes: Who holds the property and what is it? What is its value?
- Do you have a claim against anyone or any business? If there are large medical debts, are the medical bills from injury? Are you the plaintiff in any lawsuit? What is the status of each case and who is representing you?
- Are you entitled to life insurance proceeds or an inheritance as a result of someone’s death? If yes, please explain the details. If you become a beneficiary of any one’s estate within six months of the date your bankruptcy petition was filed, the trustee must be advised within ten days through your counsel of the nature and extent of the property you will receive. FRBP 1007(h) n. Does anyone owe you money? If yes: Is the money collectible? Why haven’t you collected it? Who owes the money and where are they?
- Have you made any large payments, over $600, to anyone in the past year?
- Were federal income tax returns filed on a timely basis? When was the last return filed? Do you have copies of the federal income tax returns? At the time of the filing of your petition, were you entitled to a tax refund from the federal or state government? If yes: Inquire as to amounts.
- Do you have a bank account, either checking or savings? If yes: In what banks and what were the balances as of the date you filed your petition?
- When you filed your petition, did you have: i. any cash on hand? ii. any U.S. savings bonds? iii. any other stocks or bonds? iv. any certificates of deposit? v. a safe deposit box in your name or in anyone else’s name?
- Do you own an automobile? If yes: What is the year, make, and value? Do you owe any money on it? Is it insured?
- Are you the owner of any cash value life insurance policies? If yes: State the name ofthe company, face amount of the policy, cash surrender value, if any, and the beneficiaries.
- Do you have any winning lottery tickets?
- Do you anticipate that you might realize any property, cash or otherwise, as a result of a divorce or separation proceeding?
- Have you been engaged in any business during the last six years? If yes: Where and when? What happened to the assets of the business?
Source: Executive Office of U.S. Trustee, Handbook for Standing Trustees, Effective 03/01/06 App C-2.
6. Creditors that are present are allowed to ask questions. Answer truthfully. Sears is a creditor that often shows up because their credit card creates a security interest in the property you purchase. You may wish to tell them you are surrendering the property to them, rather than establish payments for it. Although this varies by jurisdiction, where I practiced I never had Sears, or any other small creditor, actually hire someone to go to pick up the items from the debtors even though they said they would. After all, what is a used product really worth?
7. When the Trustee dismisses you, even if you are not told this, it is very likely that you will get your discharge of your debts – which is what you are seeking.
8. Before leaving, make sure you have your ID and other personal documents and you are done.
