CHAPTER 11 BANKRUPTCY
WHAT TO EXPECT ONCE YOU FILE FOR CHAPTER 11
Meeting with the U.S. Trustee
Shortly after your case is filed, a meeting will be scheduled with the US Trustee, a division of the Department of Justice. At the meeting, you and your attorney will discuss the case with your assigned analyst. At the meeting a you and your attorney will discuss the case with the US Trustee’s representative. This meeting sets the stage for a successful Chapter 11 and is an important step in the process. Shortly after the initial meeting, you will be required to attend a “Section 341 Meeting of Creditors.” Your attorney will attend this meeting with you. An attorney for the US Trustee will also attend this hearing and creditors have the opportunity to attend. The US Trustee representative will interview you and ask you a series of questions about your case. The questions are straightforward and not meant to trick you. You are there to testify as to the truthfulness of the information contained in your Bankruptcy papers. The meeting is designed to give creditors an opportunity to appear and ask you questions. While the meeting is a very important part of the Bankruptcy process and you must be absolutely truthful in answering the questions, the atmosphere is informal and not meant to be intimidating or harassing. If you get stumped, your attorney will be there to assist you.
What Happens Next?
After your meeting, your attorney has a set time period in order to propose a Plan of Reorganization.. Your attorney will work to resolve any concerns the US Trustee or Creditors may have. Once all issues have been resolved and all interested parties are in agreement, the Plan will be confirmed by the Bankruptcy Judge.
After confirmation, you as the “debtor in possession” will follow the terms of the Plan to pay your creditors. At least through confirmation of the Plan, you will be required to file a financial report with the US Trustee, which includes a monthly fee. After completion of the Plan, your attorney will file documents informing the Court that the Plan has been completed.