Section 341 Meeting

A potentially great information source for creditors, and possibly a chance for a DIP to re-assure creditors. Within a reasonable time after a bankruptcy case starts (including both chapter 7 and chapter 11 cases), the U.S. Trustee convenes a meeting of creditors and equity holders under section 341 of the Bankruptcy Code. A representative of the DIP or debtor is placed under oath and must answer questions posed by, among others, the creditors that are present.  The DIP or debtor is often made to explain why it filed and what it plans to do in the case.  Usually, the Schedules and SOFA have already been filed, giving parties the chance to query the DIP or debtor under oath as to discrepancies or seeming omissions.