Your Chapter 7 bankruptcy or Chapter 13 bankruptcy hearing can be scary but there is nothing to fear. A good attorney can help you navigate the process.
The Chapter 7 and Chapter 13 bankruptcy hearing in Fort Worth, Texas
Here in Fort Worth, when a person files for Chapter 7 or Chapter 13 bankruptcy they must attend a section 341 hearing. A Section 341 hearing refers to the U.S. Code section 11 USC 341. This requires that a bankruptcy trustee conduct a hearing on your Bankruptcy case within 45 days of the your Chapter 7 or Chapter 13 bankruptcy being filed. What will happen at that hearing?
Chapter 7 bankruptcy cases filed in Tarrant County are assigned to the Fort Worth Division of the Northern District of Texas. There are several different Chapter 7 Bankruptcy Trustees and two different Chapter 13 Trustees. Chapter 7 bankruptcy 341 meetings are conducted differently than Chapter 13 bankruptcy 341 meetings so it is important to have an experienced bankruptcy attorney.
The Chapter 7 Bankruptcy 341 Hearing Process
When your bankruptcy case is filed electronically, the Court will automatically set a hearing date and time for your Chapter 7 341 hearing. These hearings are typically conducted Monday through Friday mornings. They do not usually schedule these hearings in the afternoon.
When your case is assigned to a trustee and a hearing date is scheduled, the Court will mail out a Notice. The notice will contain a lot of information including your case number, trustee name and address, the time and date of your hearing and a phone number for you to call. Your Chapter 7 hearing is currently conducted by conference call. That may change in the future but at this time you only have to call into the conference call, mute your phone and wait your turn. Your bankruptcy attorney will also call into the conference call.
When your name is called by the Chapter 7 Bankruptcy Trustee you should unmute your phone and identify yourself. Your attorney will do the same. The Chapter 7 Bankruptcy trustee will swear you in and your attorney will proffer your identity. “Swear in” means that the Chapter 7 Bankruptcy Trustee will administer an oath that you promise to tell the truth. “Proffer your identity” means your attorney will state on the record how your bankruptcy attorney knows it is you testifying and not someone else. Usually your attorney will say something like “I met with so and so and reviewed their driver’s license and Social Security Card. Those are the same documents I sent to your office. Further I spoke to so and so in preparation for this hearing and I can attest this is so and so on the phone”.
Once your identity has been established and you have been sworn in, your bankruptcy attorney will ask you a few questions. A good bankruptcy attorney will have gone over those questions with you before the hearing. Generally those questions are:
- Did you review the bankruptcy paperwork?
- Do you need to make any changes?
- Did you list all your assets and debts?
- Do you have the right to bring a lawsuit against anyone?
- What is your current income?
- Why did you have to file bankruptcy?
Each Chapter 7 bankruptcy trustee is a little different so make sure you have spoken to your bankruptcy attorney. You can expect your Chapter 7 Bankruptcy hearing to last about 10 minutes.
The Chapter 13 Bankruptcy 341 Hearing
In Fort Worth, there are two Chapter 13 bankruptcy trustees. Each trustee conducts the 341 Hearing the same. As with a Chapter 7 bankruptcy, you will receive a Notice of your 341 Chapter 13 Hearing date and time. However the Chapter 13 hearing time on the notice is NOT accurate. This is because the Chapter 13 Trustee conducts their hearing by Zoom. They will send out Zoom links 2 or 3 days before your hearing. These links will provide a specific time for your hearing. Traditionally the Chapter 13 bankruptcy Trustee has scheduled the hearings for the afternoon. However, more and more often we are seeing the hearing scheduled in the morning. It is important that you contact your Chapter 13 bankruptcy attorney prior to your hearing to verify the correct time and make sure you have the link you need to attend your Chapter 13 bankruptcy 341 meeting.
Since the meeting is conducted by Zoom you need to make sure you have the technical ability to attend your hearing. Most people now have a laptop or cell phone with a video camera so it makes attending these meetings pretty easy. You need to download the Zoom app prior to your Chapter 13 Bankruptcy 341 hearing.
When you connect via Zoom, you will initially be in a “waiting room” where you will wait until the Chapter 13 Trustee admits you to the hearing. You should be present and your attorney should also be present. The Chapter 13 Bankruptcy trustee will admit you to the hearing once they finish the hearing before you. Sometimes that means waiting a few minutes longer than scheduled but generally the Chapter 13 Bankruptcy trustee runs on time.
When you are connected to the hearing the first thing you will be asked to do is to show your Driver’s license and Social Security card to the Chapter 13 trustee. After the Chapter 13 Trustee verifies your identity, they will swear you in and start asking some basic questions. They will want to know if you signed your paperwork, met with an attorney, listed all of your assets and debts. This is just like the questions they ask a Chapter 7 bankruptcy meeting. The biggest difference is that at the Chapter 13 trustee meeting the bankruptcy trustee will also go over your Chapter 13 bankruptcy Plan of Reorganization. The bankruptcy trustee will make sure you know who you are paying, how much your payments are and when they are due. If you have a good bankruptcy attorney then you should have no surprises. These hearing usually last about 5-10 minutes. In the week or two after your hearing is concluded, the trustee will file any objections they have to your documents. Your bankruptcy attorney will work with you and the trustee’s office to resolve these objections.
Conclusion
I hope that this helps give you an idea of what will happen at your bankruptcy hearing. Most people are a little nervous before the hearing but there is nothing to fear. If you have been honest with your bankruptcy attorney you should have no problem with your bankruptcy hearing.
