Do my creditors appear at the
341 meeting of creditors?
In most cases no, but they can. A creditor
can appear and ask you questions. If a creditor does appear
to ask you questions, remember that you are under oath when
answering. If you have an attorney, let your attorney
handle the creditor. The only time a creditor will appear
is when there may be an issue of fraud. For example, you
took out a loan a few months before filing your petition,
and now you want to discharge the debt. The creditor may
seek to question you on your intentions to repay, the
purpose of the loan, when you decided to file bankruptcy,
etc. The creditor wants to see if they can file an
adversary action alleging fraud so that the debt will not
be discharged in bankruptcy. Be very careful, and think
before you speak. Oftentimes, people get really nervous
when being questioned and don’t explain their situation
clearly because the creditor is trying to trip them up or
put words in their mouth.