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What happens at the creditors' meeting in bankruptcy?

After a bankruptcy petition in Louisiana is filed, the petitioner's creditors are so advised by the bankruptcy court. They are also notified of the entry of an automatic stay, prohibiting them from attempting to collect on their debts. After about three to six weeks, the court-appointed trustee will arrange a meeting of creditors in which they -- or their representatives -- can question the consumer and the bankruptcy trustee.

Attending the meeting is optional for the creditors. The person who filed for bankruptcy must attend the meeting, along with his or her spouse -- if married. The spouse must attend regardless of whether he or she is part of the filing. Even though the bankruptcy judge will not be present at the creditors' meeting, the consumer must provide sworn testimony in answer to the questions asked.

Both the creditors and the bankruptcy trustee may ask questions. The trustee will then ensure that the consumer understands the consequences of a bankruptcy filing, and the effect of reaffirming and debts -- should the filer want to do so. Once the trustee is convinced all is clear, the filer will have the opportunity to express his or her desire to move ahead with the bankruptcy process.

Louisiana consumers who have questions about the bankruptcy process can obtain answers by consulting with an experienced bankruptcy attorney. Seeking legal advice and support from the outset can help a consumer to understand the process and know what to expect. The client may regain financial stability with the step-by-step guidance of a skilled attorney throughout the bankruptcy proceedings.

Source: moneycrashers.com, "How to Declare and File for Bankruptcy -- 4-Step Process", Kira Botkin, Accessed on Jan. 6, 2017

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