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What happens at a meeting of the creditors?

On Behalf of | Jan 17, 2019 | Chapter 13

Filing for Chapter 13 bankruptcy is the beginning of a lengthy legal process that may force an individual to face difficult truths about their financial situation. For example, one of the requirements of moving through the process that a Tennessee resident must complete is a meeting with the creditors to whom they owe money. The meeting of the creditors can be an intimidating event for a person who is challenged to keep up on their payments to their lenders and loan holders.

After a person files for Chapter 13 bankruptcy their matter will be reviewed and a meeting of the creditors will be scheduled. The meeting typically will occur several weeks to two months after the individual has offered their Chapter 13 petition. The meeting will involve all of the creditors to whom the debtor intends to pay money through their repayment plan as well as the debtor.

The debtor must attend the meeting because during it they will be asked to answer questions about their finances by their lenders and others. If a debtor files for Chapter 13 bankruptcy with their spouse then both partners must attend the meeting so that they can both be available to provide information. Lenders who take issue with the debtor’s repayment plan may address those concerns in the forum of the meeting and solutions can be worked out so that the debtor may pursue their plan to become financially free.

The meeting of the creditors is only one of the requirements that a debtor must work through to get a bankruptcy discharge. In order to prepare for the full process of seeking financial freedom through Chapter 13 bankruptcy, readers may wish to contact their trusted bankruptcy attorneys.