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Meeting of creditors: What you should know

If you file for Chapter 7 or Chapter 13 bankruptcy in Texas, you will be required to attend a meeting of creditors as part of the bankruptcy process. The meeting of creditors gives creditors, as well as the trustee, an opportunity to ask questions regarding the bankruptcy.

This mandatory meeting, which is headed by a court-appointed trustee, is designed to educate debtors, and make sure that they are aware of the potential effects that filing for bankruptcy can have on their lives. For instance, the trustee must make sure that debtors know the impact that filing for bankruptcy can have on a credit history report. Debtors must also choose whether they wish to reaffirm any of their secured debt in order to maintain possession of property. The trustee presiding over the case must make sure that the debtor understands what reaffirming debt means, as well as his or her responsibility in the matter.

In a Chapter 7 bankruptcy, the trustee may determine whether there is any property that the court needs to repossess and distribute to creditors. He or she may require that you bring additional documents to the meeting. During a Chapter 13 meeting of creditors, however, the trustee must evaluate the debtors proposed reorganization plan and decide whether changes should be made regarding the schedule of payments. In order to make sure that the process is fair, bankruptcy judges are not allowed to be present during the meeting.

This information is intended to educate and should not be taken as legal advice. 

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