LAWDOG BANKRUPTCY: CHAPTER 13

341 Meeting

Duties of Trustee In Chapter 13

The Chapter 13 Trustee collects payments from debtors, makes distributions to creditors, and otherwise assists in the implementation of Chapter 13 plans. If the Chapter 13 debtor is engaged in business, the Trustee is required to investigate the acts, conduct, assets, liabilities, and financial condition of the debtor, the operation of the debtor's business and the desirability of the continuance of such business, and any other matter relevant to the case or to the formulation of a plan. The trustee also must file a statement of this investigation, including any facts involving fraud, dishonesty, incompetence, misconduct, mismanagement, or irregularity in the management of the affairs of the debtor, and transmit a summary to any creditors' committee or equity security holders' committee. See Section 1302 reproduced here for illustration purposes only.

Under Section 1304, a debtor engaged in business must perform certain duties of the trustee specified in Section 704(8) of this title. If the business of the debtor is authorized to be operated, the debtor-in-possession must file with the court, the United States trustee, and with any governmental tax units, periodic reports and summaries of the operation of such business, including a statement of receipts and disbursements, and such other information as the United States trustee or the court requires. See Section 1304 reproduced here for illustration purposes only.

A Trustee is appointed, pursuant to Section 1302, to administer the case when a Chapter 13 petition is filed. If the number of cases so warrants, the United States trustee may appoint an individual under section 586(b) of title 28 to serve as standing trustee in cases under Chapter 13. And if such individual qualifies under section 322 of this title, then such individual shall serve as trustee in the case. Otherwise, the United States trustee shall appoint one disinterested person to serve as trustee in the case, or the United States trustee may serve as trustee in the case. See Section 586(b) of title 28 reproduced here for illustration purposes only.

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Section 341 Meeting

The Section 341 Meeting of Creditors, formerly and commonly referred to as "First Meeting of Creditors" is intended to provide an opportunity, early in the case, for questioning the debtor.

The United States Trustee's Office presides at this "341 Meeting". The debtor must appear and answer, under oath, questions posed by creditors, a trustee, or the U.S. Trustee's office. Bankruptcy Rules Rule 2003(a) provides that in a Chapter 13 case, the United States trustee must call a meeting of creditors to be held no fewer than 20 and no more than 50 days after the order of relief. Creditors may appear if they wish, and ask questions regarding the debtor's financial affairs and any proposed plan.

A representative of the creditor may appear to observe, or to ask questions of the debtor. An appearance at the 341 meeting is required of a debtor, but appearance by creditors is not required. If a husband and wife have filed a joint petition, they both must attend the creditor's meeting. See Section 341 and Section 343 reproduced here for illustration purposes only.

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