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Bankruptcy FAQ

Tips to help you prepare for the meeting of creditors

On Behalf of | Dec 12, 2023 | Bankruptcy

One key aspect of your bankruptcy journey is the meeting with your trustee, also called the meeting of creditors. Usually, creditors do not attend.  This meeting provides your creditors an opportunity to ask questions about your financial situation, which ensures transparency in the process.

You can reduce your anxiety with some advanced preparation before your meeting.

Gather and organize documents

You may need bank statements, tax returns, pay stubs and other financial records to illustrate your current finances. Organize all of this information in advance so you can avoid overlooking any details in your preparation.

Review your petition

Ensure that all of the information in your bankruptcy petition is accurate and consistent with your financial records. You will need to address any discrepancies in the meeting, so take time now to confirm everything.

Prepare for questions

The main purpose of this meeting is for your trustee and creditors to understand your financial situation and the reason for your bankruptcy. Creditors may ask a variety of questions about your financial affairs, including income, expenses and any assets. Practice your answers to some of the most common questions for a smoother, more confident presentation.

Be honest

Remember that honesty is important during this meeting. Keep your composure and avoid volunteering any additional or unnecessary information, but provide accurate, honest responses to the questions asked. Remember to ask for clarification of any question you do not fully understand.

More than 416,000 Americans filed for bankruptcy in 2023. The process offers valuable respite from the burden of financial challenges, though it does have several necessary steps, including the meeting of creditors. When you know how to prepare, you can minimize the intimidation you might otherwise feel when facing them.