Section 341 Meeting of the Creditors

Purpose of the Meeting

The primary function of the section 341 meeting in San Diego California is to provide an opportunity for creditors and the trustee to examine the debtor under oath , in the presence of a lawyer from the Pacific Bankruptcy Center, about issues related to the bankruptcy case.

Typical Questions that are asked at the Meeting

Questions that a Chapter 7 trustee may ask at a consumer bankruptcy case concern the the debtors household budget and any claimed excess in allocation of necessary expenses, the basis for the valuation of property by the bankruptcy debtor, whether the debtor has any household income or assets that are not disclosed on the bankruptcy papers. The trustee will also inquire as to whether the debtor has made any sales or transfers of property in the last six years. Lawyers from the Pacific Bankruptcy of San Diego California typically will have asked the client the same questions in the preparation of clients bankruptcy case to avoid unnecessary suprise or confusion at the hearing.

Creditors Presence at the hearing

If creditors are present they may inquire about the location and condition of a secured creditor's collateral, the exemptions claimed by the debtor's lawyer, the facts relating to an allegedly non-dischargeable debts, the disappearance of assets, the operation of the debtor's business, the reasons for filing. If the scope and manner of these questions are improper, irrelevant or argumentative, a lawyer from the Pacific Bankruptcy Center of San Diego will object and instruct the client not to answer. Bankruptcy Code §343; Bankruptcy Rule 2004.

The Meeting in a Commercial Case

In a commercial chapter 7 bankruptcy there may be many parties interested in examining the bankruptcy debtor at the section 341 meeting, and the time allotted to each is limited. Therefore, the debtor also may be questioned at greater length (similar to a deposition) at another time and place. In such case, the party in interest will need to file a motion through their lawyers requesting that the court order the debtor to appear for the examination. If the scope of the questions are improper a lawyer from the Pacific Bankruptcy Center in San Diego will object and seek a protective order from the Bankruptcy Court Judge.

Refusal of the Debtor to Testify

Debtor's immunity from prosecution: If the debtor validly asserts the constitutional privilege against self-incrimination, he may be granted immunity from prosecution by the judge of the United States District Court for the Southern District of Caloifornia, and then he may be required to provide information at the section 341 meeting or at a hearing in the case despite the privilege. Bankruptcy Code §344; 18 United States Code §6003; San Diego Bankruptcy Reporter.

Individual's privilege: Only an individual may avail himself of the constitutional privilege against compulsory self-incrimination. Thus, the privilege cannot be invoked by a corporation.

Remedies where refusal denied

Incarceration of debtor or denial of discharge: If the judge for the District Court for the Southern District of California in San Diego grants immunity to the debtor, who then still refuses to testify in the case, the debtor may be held in contempt and incarcerated. Alternatively, he may be denied-a discharge. Bankruptcy Code §727(a)(6)(B); San Diego Bankruptcy Reporter.

 

United States Bankruptcy Court for the Southern District of California
http://www.casb.uscourts.gov/
Jacob Wienberger United States Courthouse
325 W. F Street
San Diego California, 92101-6988
(619) 557-5620

 

California Southern District Court
http://www.casd.uscourts.gov/
4290 Edward J. Schwartz
United States Courthouse
940 Front Street
San Diego, CA 92101