Attending The Meeting Of Creditors In Colorado
When you file bankruptcy, you must make at least one appearance in front of the trustee at the meeting of creditors. This meeting is not held in a courtroom, and the Bankruptcy Code specifically prohibits a judge from attending. Instead, the purpose of the meeting is two-fold. The first is to give creditors the opportunity to ask you questions about the debt or your finances. In practice, however, creditors do not usually show up to the meeting. The other purpose of the meeting is to give the trustee the chance to ask some questions. The trustee operates from a script and will ask, among other things, whether you understand:
–the potential consequences of seeking a discharge in bankruptcy, including the effects on credit history;– your ability to file a petition under a different chapter of the Bankruptcy Code;– the effect of receiving a discharge of debts under the Bankruptcy Code; and–-the effect of reaffirming a debt.
All told, you will be sitting in front of the trustee between three and five minutes. It’ll be over before you know it, and you’ll wonder why you were so worried in the first place.
If you miss the meeting of creditors, the trustee will probably “continue” the meeting, which simply means that she will reschedule it.
If you miss the new date, it’s very likely that the trustee will ask the court to dismiss your bankruptcy case. If your case is dismissed, you lose the protection of automatic stay that goes into place when your case is filed. Your creditors will be able to resume their collection activity. Foreclosures can continue and creditors can resume their garnishments.
The anticipation of the meeting of creditors probably causes more stress for my clients than any other issue as they navigate the bankruptcy process. It is essential that you not let your anxiety overwhelm you and cause you to miss this important meeting.
