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Attending a 341 Meeting - A Learning Experience!!

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    Attending a 341 Meeting - A Learning Experience!!

    Today I sat and observed a Creditor’s Meeting in preparation for my meeting which is scheduled for early June. If anyone has the time I would recommend attending such a meeting (preferably one being run by your Trustee) prior to your scheduled meeting. It will really help calm your nerves and give you a sense of what the Trustee is trying to do during these meetings.

    A few days ago I called my local US Trustee’s office and asked when my Trustee would be hearing cases next. Upon arriving this morning, I found a nondescript office building set back in an office park. I took the elevator to the 6th floor and there I found several conference rooms and a posting of names in front of each. I entered the room my Trustee was using and sat down to listen to a few cases. (Again, no security check and no formal process for entering the hearing room.)

    (As a side-note: proper attire should consist of slacks and a collared shirt/jacket for men or slacks and a blouse for women (i.e. business casual). However, nearly ever debtor appeared in jeans, t-shirt, and tennis shoes.)

    Of the ten cases I witnessed, all but one debtor was represented by an attorney. The pro se debtor did fine and her case was resolved in about 5 minutes.

    But what is prompting me to write this post are the cases involving attorneys. The quality of the lawyers representing debtors was absolutely abysmal. I could not believe that these debtors actually paid money to some of these attorneys. With only one exception (and this exception was a pro bono lawyer with a legal aid clinic -- and he did a great job) all of the attorneys had no idea what was contained in their client's paperwork and more than half the time they were asked to correct obvious errors that were pointed out by the Trustee.

    In one case it was clear that the attorney representing a debtor had sent a questionnaire to his client. Apparently one of those questions was not answered by the debtor. So the attorney entered a statement on one of the Schedules that said: “Client declined to provide the information requested.” The Trustee saw this and went nuts. He turned to the attorney and asked if adding this statement was a way to protect himself at the expense of his client and wondered aloud what the “tire tracks on the forehead of the debtor would look like after [her] attorney threw her under the bus.” The debtor had no idea that the statement was even on the Schedule because, of course, she too had NEVER read the Schedules (not before filing and not even before the 341 Meeting).

    Yikes!!

    Some useful observations:

    The Trustee seemed very interested in the value of vehicles listed on the Schedules ... even if such vehicles were secured and had no equity. He kept his iPad close by and anytime he felt that a vehicle value was misleading he would look up the value right there and then ask for a full explanation from the attorney. He would go so far as to ask the debtor precisely what kind of amenities the car had ... right down to the leather seats ... so he could more precisely ascertain the value of the vehicle. Of course, the attorney never OVER-valued the car ... it was always a gross undervaluation. (How these attorney’s think they can get away with this is breathtaking ... especially considering that many of them were clearly appearing in front of this Trustee on a regular basis.)

    Also, the Trustee invariably asked about tax refunds and when they were received.

    On the whole, I'm embarrassed for many of these debtors for not knowing more about their own cases. And I'm still trying to figure out how some of these attorneys stay in business or avoid malpractice lawsuits.

    My point here: be prepared and make sure your attorney is prepared. One case today was actually halted by the Trustee out of frustration. He sent the debtor and his attorney to the hallway so they could better prepare for the meeting. Ugh....!!!!

    How this man can serve as a Trustee and not pull his hair out is beyond me.

    (DAE: Chapter 7, pro se)
    Last edited by DAE; 05-17-2011, 01:55 PM.

    #2
    Great story. Thanks for taking the time to share your experience.
    There are two secrets for success in life:
    1.) Never tell everything you know.

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      #3
      At my 341 meeting, there were several different lawyers handling most all of the cases. All in all, the lawyers were prepared except for one lawyer from one law firm that had several cases. You could see the trustee ready to choke the lawyer out every time he had a client.

      Each and every client that he represented had their 341 continued because the documentation was not correct...

      The moral of the story? Be careful who represents you!
      All information contained in this post is for informational and amusement purposes only.
      Bankruptcy is a process, not an event.......

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        #4
        VERY fine post. It should be made a 'sticky'. Our lawyer told us a "stand in" lawyer would be there and she would not. Just as well, she really was 'never there' anyway. Worthless lawyer, but we didn't even know what or why we were there as we were never educated by our lawyer. Also just as well as we brought what she told us, never had worries in our ignorance and simply answered his questions honestly. Took less than 10 minutes. 'Hub
        If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.

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          #5
          Thank you so much for this post, DAE!

          Lala
          This forum is full of amazingly talented, intelligent and caring people.
          Ch7 BK filed Pro se: 6/2011; 341 Meeting: 7/2011; Assets abandoned; Report of No Distribution: 8/2011; Discharged and closed 9/2011.

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            #6
            One of the saddest things about the 341 meetings is just how beaten down the petitioners look. They look emotionally and physically drained -- sitting listlessly, waiting for their chance to find out if the system will give them another chance. I hope they all bounce back...and not just 90% back...but, 101% back. There was a time while growing up when each of us, no matter our circumstances, couldn't even conceive of terms like "debt," "disposable income," and "creditor." It's too bad we can't all go back to that place!

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