Businesses facing financial issues can potentially avail themselves of bankruptcy provisions and find relief. When bankruptcy is chosen as an option, the business must attend a 341 meeting, or meeting of the creditors. Since large, complex debts can be complicated, both debtors and creditors should seriously consider bringing their lawyers to the 341 meeting.
If you are going through bankruptcy as a debtor or a creditor and you are facing a meeting of creditors, contact an experienced attorney for help. Weisblatt Law Firm has shepherded numerous clients through creditor meetings and is ready to help you. Call (713) 666-1981 today.
Understanding 341 Meetings
341 meetings are mandatory meetings between a debtor and their creditors. It is a crucial part of the bankruptcy process that is designed to verify the facts and circumstances of the bankruptcy and move along the negotiations between creditors and the debtor.
A trustee will be present to oversee the 341 meeting proceedings. Also present will be the debtor and their various creditors. However, in many cases, no creditors show up. Ultimately, the trustee will work to establish satisfactory liquidation and repayment plans that are also legal under bankruptcy law.
341 meetings are important because they lead to the verification of eligibility and paperwork in bankruptcy cases. This step in the process helps prevent the bankruptcy court from having to sort through bankruptcy petitions, documents, and paperwork and helps prevent obviously ineligible cases from clogging up the courts.
The Benefits of Having a Lawyer During Your 341 Creditor Meeting
If your business is facing bankruptcy, or if you are a creditor to someone facing bankruptcy, you should strongly consider the benefits of bringing legal counsel to the meeting of creditors. Debtors especially need to have their interests safeguarded during the 341 meeting as they work with the trustee, but because the bankruptcy process can be complicated for creditors, they too should be represented.
A Lawyer Helps Set the Stage
As mentioned, the 341 meeting is important for setting the stage for the rest of the bankruptcy proceedings. In other words, what happens during the meeting of creditors will have an effect on the outcome of the bankruptcy. The lawyers of both creditors and debtors have an opportunity during this phase to make strong moves to protect their clients’ interests.
A Lawyer Provides Relevant Counsel
During a 341 meeting, the debtor will be required to respond to various financial and life questions posed by the trustee. It is during this questioning that a lawyer is crucial. An attorney will work diligently to protect your interests and prevent you from making erroneous statements or statements that may harm you.
For example, many of the questions posed by the trustee could lead to answers that are inaccurate or belong to other questions. A debtor’s answer, even if erroneous or confused, will form part of the record and likely cause problems later down the line.
As you field questions from the trustee as a debtor, your attorney will follow along meticulously and intervene whenever an issue arises. Keep in mind that an attorney at a 341 meeting is not allowed to present arguments or testify. They may, however, provide their client with counsel and information.
The Other Side May Have Counsel
Another reason to have counsel as a debtor is that the creditors are likely to have counsel. After all, bankruptcy is complicated for creditors, too. Without an attorney, you may be facing numerous creditors and their attorneys without professional help. This could lead to confusion, overreach, and errors as you struggle to make it through the meeting with some semblance of understanding.
Lawyers Lead to Peace of Mind
Creditor meetings and bankruptcies in general are often difficult and stressful times for businesses facing financial issues. Creditors also experience a bit of stress as they face the prospect of losing out on valuable revenue. The benefits of bringing a lawyer to the meeting are undeniable. In either case, the services of an experienced attorney will provide both creditors and debtors with valuable peace of mind throughout the process.
Weisblatt Law Firm helps protect debtors’ interests and uses various legal avenues to resolve all manner of client issues.
Call for an Advocate for Your Creditor’s Meeting
Creditor meetings are serious and ultimately set the stage for the bankruptcy proceedings that follow. Because large debts can be complicated, debtors need seasoned representation during 341 meetings so they can make it to the other side of bankruptcy in the best position possible. With a lawyer representing your business at a 341 meeting, you‘ll get the peace of mind you need to weather the proceedings that lie ahead.
If you are dealing with bankruptcy issues and need guidance, do not hesitate to call Weisblatt Law Firm for help. Contact us at (713) 666-1981 for a consultation — learn how we can lead you through the bankruptcy process.
Attorney Andrew Weisblatt
Mr. Weisblatt has practiced continuously since becoming licensed in 1992 and has represented businesses ranging in size from one person start-up ventures to multi-national corporations employing hundreds of people in multiple countries. From 2005 through 2009 Mr. Weisblatt was in-house counsel and chief operating officer of a multi-national corporation in the steel products industry. That in-house position provided valuable insight into how businesses work and what they actually need from their lawyers – both in-house and outside counsel. Attorney Bio
