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Do I Have to Go to Court?
There is one appearance you will have to make, once
we complete preparing and filing your paperwork.
This hearing is not really a formal court
appearance, but is called a Section 341 Meeting of
Creditors, or 341 Meeting for short. The meeting is
typically held 30 to 45 days after your bankruptcy
petition has been filed with the court. You will
receive an official notice in the mail from the
court which informs you of the date and time of your
meeting. This notice is mailed several weeks in
advance of your meeting to allow you to make
arrangements to take time off from work, if
necessary.
The people at this meeting are you, your attorney,
the Bankruptcy Trustee, and any creditors who care
to show up. You'll be relieved to hear that
creditors seldom show up for these meetings, since
these companies understand that your debts will be
discharged in bankruptcy and there is little they
can do about it. The meeting consists primarily of
the Trustee asking you brief questions about your
answers on the bankruptcy petition and schedules.
Although you will be under oath, there will be no
judge there, and the meetings are informally held
sitting around a table instead of using a witness
stand. The Trustee’s objective is not to ask you
“trick” questions, but rather to ask you under oath
about the information you provided on your
bankruptcy petition and to assure himself that
information in your petition is complete and
accurate. Most of the Trustee’s questions can be
answered with a simple “yes” or “no”.
Most debtors are amazed at how easy this experience
is, and after it’s all over, most say, “Is that
all?” Your Trustee’s job is to find any assets of
yours that are not exempt. The Trustee won't usually
ask how you got into this mess, although you might
be tempted to want to tell your story. It is best to
just answer the simple questions asked, since we
will have already looked into and dealt with any
potential problem areas, such as transfers or
non-exempt assets, long before you reach this
meeting.
We expect that you will find that the bankruptcy
forum is quite amicable and non-adversarial,
particularly compared to your recent experiences
with abusive bill collectors. The people in
bankruptcy “court” are remarkably cordial and
respectful. These people work in the bankruptcy
profession day in and day out, and since most
bankruptcy cases are clear cut, there likely won’t
be a lot of issues associated with your case.
As long as you've been honest when filling out all
of your paperwork, your Section 341 Meeting of
Creditors will go smoothly. It’s usually a good day
to celebrate, because at that point, most of your
case is over. What’s left is to wait another sixty
days to get the final decree and discharge from the
court. Don’t forget to complete your second credit
counseling session, if you haven’t already done so
prior to your court date; if you don’t complete your
second credit counseling course on time, you will
not receive a discharge -- you will still owe all of
your debts after your case closes!
WHAT WILL THE TRUSTEE ASK ME?
When the Trustee calls your name, you will come up
to the table and sit next to your lawyer. The
Trustee will then ask you to raise your right hand
and will administer an oath something like “Do you
solemnly affirm that the information contained in
your bankruptcy petition and your testimony here
today to be the truth, the whole truth, and nothing
but the truth?” After you say “yes”, the Trustee
will then ask some additional questions, typically:
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Has anything changed since you filed your
bankruptcy petition? In other words, have you
moved, changed jobs, received an inheritance or
property settlement, won the lottery, etc.
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Did you receive the “Statement of Information”
from your attorney and did you read it? The
“Statement of Information” is a one-page
explanation of the various bankruptcy chapters,
the effects of a bankruptcy discharge, and the
effects of reaffirming a debt. We provide you
with this required document at your final
appointment with our office, when you sign your
bankruptcy petition.
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The Trustee will confirm your intentions with
regard to your secured debt – in other words, do
you plan to keep making payments on your house,
car, etc. or do you intend to surrender certain
property to the secured creditor? The Trustee
may also ask if you are current on your payments
for the property that you intend to keep, and
whether you have insurance coverage on this
property.
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The Trustee may ask how you determined the value
of your home or a parcel of land (tax value,
appraisal, etc.), if applicable.
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During tax refund season, the Trustee may ask
you whether you expect to receive a tax refund,
and if so, how much you expect to receive or how
much you received last year.
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The Trustee may likely ask about any property
that you have transferred or sold during the
past two years. This information is required to
be listed on your petition. The Trustee’s main
concern is whether or not you received fair
market value for any property transferred or
sold prior to your bankruptcy filing.
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If you are self-employed, the Trustee may ask
you a few questions about the nature of your
business and the valuations of your business
assets, equipment, and/or tools.
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In the very rare event that one of your
creditors shows up, they will then be given the
opportunity to ask you questions. The rare
creditor that does appear is typically a
locally-based secured creditor that has loaned
you money to buy a house or vehicle. The
creditor will usually only want to confirm with
you that you want to keep the property that they
loaned you money to purchase, and if so, they
will confirm that your payments are current and
will ask you for the name of your insurance
agent to verify insurance coverage on the
property.
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At the conclusion of your meeting, the Trustee
will typically ask “After your attorney prepared
your petition did you read it? Was it true and
accurate? Did you list all of your assets?” He
will then conclude the meeting by saying “I have
no further questions.”
You
are then free to go home! Not much else typically
happens in your case for another two months. In
about sixty days or so after your meeting of
creditors, the bankruptcy court will mail your
discharge order and final decree. These documents
mean that your case has officially closed and that
all of your dischargeable debts have been
discharged. |
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Courthouse Directions
ASHEVILLE COURTHOUSE
 Take
I-40 to I-240, approximately 5 miles to Exit 4C,
Haywood/Montford Exit. Go Left under highway on
Montford, immediate left on Haywood Street,
immediate right on French Broad Street. Next left on
Otis Street. The Federal Courthouse a very large
white building in this block on your right. There
may be street parking on Otis, but not likely. There
is a parking garage on your left across the street
from the Courthouse next to Centura Bank.
After you pass the security checkpoint inside (bring
photo ID and leave your cell phone in the car), go
to your left and there should be signs for
“Bankruptcy Meetings.” Go into the courtroom and
have a seat on one of the benches. Your name will be
called by the Trustee when it’s time for your case.
For customized directions
click here. |
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SHELBY COURTHOUSE
 FROM
MORGANTON
Take Highway 18 South towards Shelby. Once you reach
Shelby, you will see a Hardee’s on your left and the
Hospital on your right. Turn left at the stoplight
at DeKalb Street (also known as Truck Route 18
South). Stay on DeKalb/Truck 18 South, and at the
3rd stoplight turn left on Warren Street (you will
see a BP gas station on your left). Cleveland County
Law Enforcement Center and Courthouse will be
straight ahead. (100 Justice Place; Shelby, NC
28150)
If you have a problem, call 704-484-4859. This is
the Clerk’s office, and they will be able to guide
you in. Be sure to leave home early enough to allow
sufficient time for travel and waiting in line at
the courthouse security checkpoint.
FROM MARION
Take Highway 226 to Business Highway 74. At the
stoplight, take a left towards Shelby. Stay on 74,
and at the 3rd stoplight turn left (you will see a
McDonald’s and the High School on your right and
Burger King and a convenience store on your left).
Go to the 2nd stoplight and turn right. You will now
be on Warren Street: Cleveland County Law
Enforcement Center and Courthouse will be straight
ahead. (100 Justice Place; Shelby, NC 28150)
If you have a problem, call 704-484-4859. This is
the Clerk’s office, and they will be able to guide
you in. Be sure to leave home early enough to allow
sufficient time for travel and waiting in line at
the courthouse security checkpoint.
FROM LINCOLNTON
Take Highway 150 to Shelby. Follow 150 through
Shelby to the center of town. Turn left at the
stoplight at Warren Street (you will see a BP gas
station on your left). Cleveland County Law
Enforcement Center and Courthouse will be straight
ahead. (100 Justice Place; Shelby, NC 28150)
If you have a problem, call 704-484-4859. This is
the Clerk’s office, and they will be able to guide
you in. Be sure to leave home early enough to allow
sufficient time for travel and waiting in line at
the courthouse security checkpoint.
For customized directions
click here. |
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WILKESBORO COURTHOUSE
 FROM
BOONE AREA
Take Hwy US 421 to Wilkesboro. Take the exit for Hwy
268 East, toward downtown Wilkesboro. Go East on 268
about one mile, just past the church and Yadkin
Valley Bank. The Federal Courthouse/Post Office is
on the right (Hayes Federal Building, 207 West Main
Street, 2nd floor). The courthouse is across the
street from Wachovia Bank. Free street parking.
FROM THE HICKORY AREA
Go North on State Hwy 16 through Taylorsville, and
continue on Hwy 16 to Wilkesboro and US 421. Keep
going straight across the US 421 overpass, then turn
right at the first traffic signal (Hwy 18 and 268
East -- Tyson Foods will be on your left and a gas
station will be on your right). Then go about
one-quarter of a mile, just past the church and
Yadkin Valley Bank. The Federal Courthouse/Post
Office is on the right (Hayes Federal Building, 207
West Main Street, 2nd floor). The courthouse is
across the street from Wachovia Bank. Free street
parking.
FROM THE LENOIR AREA
Go North on State Hwy 18 until it joins with State
Hwy 16 at Moravian Falls. Turn left at the traffic
signal in front of the school at the Hwy 18 / Hwy 16
intersection, and continue North on Hwy 18 until you
reach US 421. Keep going straight across the US 421
overpass, then turn right at the first traffic
signal (Hwy 18 and 268 East -- Tyson Foods will be
on your left and a gas station will be on your
right). Then go about one-quarter of a mile, just
past the church and Yadkin Valley Bank. The Federal
Courthouse/Post Office is on the right (Hayes
Federal Building, 207 West Main Street, 2nd floor).
The courthouse is across the street from Wachovia
Bank. Free street parking.
For customized directions
click here. |
If you have any
questions or would like more information, please
contact our Boone office at 828-262-0500, our
Hickory office at 828-327-2240,
email
us, or use our online request form. |
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