Questions creditors ask at meeting of creditors?

Saturday , 5, October 2013 Leave a comment

Bankruptcy Lawyer in Millstone NJ.

What questions can a Creditor ask at the Meeting of Creditors in Bankruptcy Court?  At the bankruptcy meeting of creditors the chances that the credit cards or other creditors will show up at the meeting of creditors ( also known as the section 341 hearing) is very slim; Most of the time the only creditors that will show up are family members, ex spouses and/or ex business partners.
But by chance if one were to show up here is a few words on what questions the creditors can ask the debtor at the meeting of the creditors?
Creditors are allowed to ask the debtor questions about the debtor’s assets and liabilities. They are not allowed to cross-examine the debtor.
In the event that creditors ask improper questions or become argumentative your experienced bankruptcy attorney from Riviere Cresci and Singer LLC will direct you not to answer the improper question and will object to the creditor’s line of questioning as such. The trustee most likely would side with the debtor’s attorney as to the scope of the questioning.
A creditor cannot use the meeting as a fishing expedition to ask the debtor a broad range of questions.  A creditor does have the right to ask numerous relevant questions. During the meeting  there is not enough time to ask many questions and the trustees will conduct the meeting with time constraints in mind.
If a creditor seeks to ask a broad range of questions, they are able to conduct an additional examination hearing called a “section 2004 exam” because it is done pursuant to Bankruptcy Rule 2004.  Section 2004 exams are not often pursued by creditors and only take place in case where fraud suspected. . Should a section 2004 exam be requested by a creditor, it would either be held at the Bankruptcy Court  where your case is filed, or more likely, at the attorney’s office of the creditor or trustee requesting it.

The New Jersey personal bankruptcy attorneys at Riviere Cresci & Singer LLC can answer any questions you may have concerning your meeting of creditors and bankruptcy. If you live in New Jersey, including Toms River, Tinton Falls, Manchester and Point Pleasant call us for a free consultation to find out how we can help you.

Please give us your valuable comment