Do I Have to Go to Court?

There is one appearance you will have to make, once we complete preparing and filing your paperwork. This hearing is not really a formal court appearance, but is called a Section 341 Meeting of Creditors, or 341 Meeting for short. The meeting is typically held 30 to 45 days after your bankruptcy petition has been filed with the court. You will receive an official notice in the mail from the court which informs you of the date and time of your meeting. This notice is mailed several weeks in advance of your meeting to allow you to make arrangements to take time off from work, if necessary.

The people at this meeting are you, your attorney, the Bankruptcy Trustee, and any creditors who care to show up. You'll be relieved to hear that creditors seldom show up for these meetings, since these companies understand that your debts will be discharged in bankruptcy and there is little they can do about it. The meeting consists primarily of the Trustee asking you brief questions about your answers on the bankruptcy petition and schedules. Although you will be under oath, there will be no judge there, and the meetings are informally held sitting around a table instead of using a witness stand. The Trustee's objective is not to ask you "trick" questions, but rather to ask you under oath about the information you provided on your bankruptcy petition and to assure himself that information in your petition is complete and accurate. Most of the Trustee's questions can be answered with a simple "yes" or "no".

Most debtors are amazed at how easy this experience is, and after it's all over, most say, "Is that all?" Your Trustee's job is to find any assets of yours that are not exempt. The Trustee won't usually ask how you got into this mess, although you might be tempted to want to tell your story. It is best to just answer the simple questions asked, since we will have already looked into and dealt with any potential problem areas, such as transfers or non-exempt assets, long before you reach this meeting.

We expect that you will find that the bankruptcy forum is quite amicable and non-adversarial, particularly compared to your recent experiences with abusive bill collectors. The people in bankruptcy "court" are remarkably cordial and respectful. These people work in the bankruptcy profession day in and day out, and since most bankruptcy cases are clear cut, there likely won't be a lot of issues associated with your case.

As long as you've been honest when filling out all of your paperwork, your Section 341 Meeting of Creditors will go smoothly. It's usually a good day to celebrate, because at that point, most of your case is over. What's left is to wait another sixty days to get the final decree and discharge from the court. Don't forget to complete your second credit counseling session, if you haven't already done so prior to your court date; if you don't complete your second credit counseling course on time, you will not receive a discharge -- you will still owe all of your debts after your case closes!

What will the trustee ask me?

When the Trustee calls your name, you will come up to the table and sit next to your lawyer. The Trustee will then ask you to raise your right hand and will administer an oath something like "Do you solemnly affirm that the information contained in your bankruptcy petition and your testimony here today to be the truth, the whole truth, and nothing but the truth?" After you say "yes", the Trustee will then ask some additional questions, typically:

Has anything changed since you filed your bankruptcy petition? In other words, have you moved, changed jobs, received an inheritance or property settlement, won the lottery, etc.
Did you receive the "Statement of Information" from your attorney and did you read it? The "Statement of Information" is a one-page explanation of the various bankruptcy chapters, the effects of a bankruptcy discharge, and the effects of reaffirming a debt. We provide you with this required document at your final appointment with our office, when you sign your bankruptcy petition.
The Trustee will confirm your intentions with regard to your secured debt - in other words, do you plan to keep making payments on your house, car, etc. or do you intend to surrender certain property to the secured creditor? The Trustee may also ask if you are current on your payments for the property that you intend to keep, and whether you have insurance coverage on this property.
The Trustee may ask how you determined the value of your home or a parcel of land (tax value, appraisal, etc.), if applicable.
During tax refund season, the Trustee may ask you whether you expect to receive a tax refund, and if so, how much you expect to receive or how much you received last year.
The Trustee may likely ask about any property that you have transferred or sold during the past two years. This information is required to be listed on your petition. The Trustee's main concern is whether or not you received fair market value for any property transferred or sold prior to your bankruptcy filing.
If you are self-employed, the Trustee may ask you a few questions about the nature of your business and the valuations of your business assets, equipment, and/or tools.
In the very rare event that one of your creditors shows up, they will then be given the opportunity to ask you questions. The rare creditor that does appear is typically a locally-based secured creditor that has loaned you money to buy a house or vehicle. The creditor will usually only want to confirm with you that you want to keep the property that they loaned you money to purchase, and if so, they will confirm that your payments are current and will ask you for the name of your insurance agent to verify insurance coverage on the property.
At the conclusion of your meeting, the Trustee will typically ask "After your attorney prepared your petition did you read it? Was it true and accurate? Did you list all of your assets?" The Trustee will then conclude the meeting by saying "I have no further questions."

You are then free to go home! Not much else typically happens in your case for another two months. In about sixty days or so after your meeting of creditors, the bankruptcy court will mail your discharge order and final decree. These documents mean that your case has officially closed and that all of your dischargeable debts have been discharged.

Courthouse Directions

Asheville Courthouse

Take I-40 to I-240, approximately 5 miles to Exit 4C, Haywood/Montford Exit. Go Left under highway on Montford, immediate left on Haywood Street, immediate right on French Broad Street. Next left on Otis Street. The Federal Courthouse a very large white building in this block on your right. There may be street parking on Otis, but not likely. There is a parking garage on your left across the street from the Courthouse next to Centura Bank.
After you pass the security checkpoint inside (bring photo ID and leave your cell phone in the car), go to your left and there should be signs for "Bankruptcy Meetings." Go into the courtroom and have a seat on one of the benches. Your name will be called by the Trustee when it's time for your case.

Go to top

Shelby courthouse

From Morganton
Take Highway 18 South towards Shelby. Once you reach Shelby, you will see a Hardee's on your left and the Hospital on your right. Turn left at the stoplight at DeKalb Street (also known as Truck Route 18 South). Stay on DeKalb/Truck 18 South, and at the 3rd stoplight turn left on Warren Street (you will see a BP gas station on your left). Cleveland County Law Enforcement Center and Courthouse will be straight ahead. (100 Justice Place; Shelby, NC 28150)

If you have a problem, call 704-484-4859. This is the Clerk's office, and they will be able to guide you in. Be sure to leave home early enough to allow sufficient time for travel and waiting in line at the courthouse security checkpoint.

From Marion
Take Highway 226 to Business Highway 74. At the stoplight, take a left towards Shelby. Stay on 74, and at the 3rd stoplight turn left (you will see a McDonald's and the High School on your right and Burger King and a convenience store on your left). Go to the 2nd stoplight and turn right. You will now be on Warren Street: Cleveland County Law Enforcement Center and Courthouse will be straight ahead. (100 Justice Place; Shelby, NC 28150)

From Lincolnton
Take Highway 150 to Shelby. Follow 150 through Shelby to the center of town. Turn left at the stoplight at Warren Street (you will see a BP gas station on your left). Cleveland County Law Enforcement Center and Courthouse will be straight ahead. (100 Justice Place; Shelby, NC 28150)

For customized directions click here.

Go to top

Statesville Courthouse

From Boone Area
Take Hwy US 421 South for 34.8 miles. Take the exit for NC 115 South. Turning South on NC 115 South. Statesville Rd. Follow NC 115 South for 31.0 miles to Statesville. Turn Right onto W. Broad St. Federal Courthouse is on the right(200 W. Broad St)

From the Hickory Area
Take Hwy 321 South to I-40 East(to Statesville which is left on entrance ramp). Going East on I-40 towards Statesville. Exit onto NC-115 (Exit #150) towards downtown Statesville. Turn Right onto North Center Street(same as NC 115). Turn Right onto West Broad Street. Courthouse is on the right(200 W. Broad St)

For customized directions click here.