11 U.S.C. § 341 — Meetings of creditors and equity security

Page 62 TITLE 11—BANKRUPTCY § 341 (2) not later than 60 days after the date of appointment, and not less frequently than at 60-day intervals thereafter, report to the court after notice to the parties in interest, at a hearing or in writing, regarding the quality of patient care provided to patients of the debt- or; and (3) if such ombudsman determines that the quality of patient care provided to patients of the debtor is declining significantly or is oth- erwise being materially compromised, file with the court a motion or a written report, with notice to the parties in interest imme- diately upon making such determination. (c)(1) An ombudsman appointed under sub- section (a) shall maintain any information ob- tained by such ombudsman under this section that relates to patients (including information relating to patient records) as confidential in- formation. Such ombudsman may not review confidential patient records unless the court ap- proves such review in advance and imposes re- strictions on such ombudsman to protect the confidentiality of such records. (2) An ombudsman appointed under subsection (a)(2)(B) shall have access to patient records consistent with authority of such ombudsman under the Older Americans Act of 1965 and under non-Federal laws governing the State Long- Term Care Ombudsman program. (Added Pub. L. 109–8, title XI, § 1104(a)(1), Apr. 20, 2005, 119 Stat. 191.) Editorial Notes REFERENCES IN TEXT The Older Americans Act of 1965, referred to in sub- secs. (a)(2)(B), (C) and (c)(2), is Pub. L. 89–73, July 14, 1965, 79 Stat. 218, which is classified generally to chap- ter 35 (§ 3001 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 3001 of Title 42 and Tables. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as an Effective Date of 2005 Amendment note under section 101 of this title. SUBCHAPTER III—ADMINISTRATION § 341. Meetings of creditors and equity security holders (a) Within a reasonable time after the order for relief in a case under this title, the United States trustee shall convene and preside at a meeting of creditors. (b) The United States trustee may convene a meeting of any equity security holders. (c) The court may not preside at, and may not attend, any meeting under this section includ- ing any final meeting of creditors. Notwith- standing any local court rule, provision of a State constitution, any otherwise applicable nonbankruptcy law, or any other requirement that representation at the meeting of creditors under subsection (a) be by an attorney, a cred- itor holding a consumer debt or any representa- tive of the creditor (which may include an enti- ty or an employee of an entity and may be a rep- resentative for more than 1 creditor) shall be permitted to appear at and participate in the meeting of creditors in a case under chapter 7 or 13, either alone or in conjunction with an attor- ney for the creditor. Nothing in this subsection shall be construed to require any creditor to be represented by an attorney at any meeting of creditors. (d) Prior to the conclusion of the meeting of creditors or equity security holders, the trustee shall orally examine the debtor to ensure that the debtor in a case under chapter 7 of this title is aware of— (1) the potential consequences of seeking a discharge in bankruptcy, including the effects on credit history; (2) the debtor’s ability to file a petition under a different chapter of this title; (3) the effect of receiving a discharge of debts under this title; and (4) the effect of reaffirming a debt, including the debtor’s knowledge of the provisions of section 524(d) of this title. (e) Notwithstanding subsections (a) and (b), the court, on the request of a party in interest and after notice and a hearing, for cause may order that the United States trustee not con- vene a meeting of creditors or equity security holders if the debtor has filed a plan as to which the debtor solicited acceptances prior to the commencement of the case. (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2564; Pub. L. 99–554, title II, § 212, Oct. 27, 1986, 100 Stat. 3099; Pub. L. 103–394, title I, § 115, Oct. 22, 1994, 108 Stat. 4118; Pub. L. 109–8, title IV, §§ 402, 413, Apr. 20, 2005, 119 Stat. 104, 107.) HISTORICAL AND REVISION NOTES LEGISLATIVE STATEMENTS Section 341(c) of the Senate amendment is deleted and a contrary provision is added indicating that the bankruptcy judge will not preside at or attend the first meeting of creditors or equity security holders but a discharge hearing for all individuals will be held at which the judge will preside. SENATE REPORT NO. 95–989 Section [Subsection] (a) of this section requires that there be a meeting of creditors within a reasonable time after the order for relief in the case. The Bank- ruptcy Act [former title 11] and the current Rules of Bankruptcy Procedure provide for a meeting of credi- tors, and specify the time and manner of the meeting, and the business to be conducted. This bill leaves those matters to the rules. Under section 405(d) of the bill, the present rules will continue to govern until new rules are promulgated. Thus, pending the adoption of different rules, the present procedure for the meeting will continue. Subsection (b) authorizes the court to order a meet- ing of equity security holders in cases where such a meeting would be beneficial or useful, for example, in a chapter 11 reorganization case where it may be nec- essary for the equity security holders to organize in order to be able to participate in the negotiation of a plan of reorganization. Subsection (c) makes clear that the bankruptcy judge is to preside at the meeting of creditors. Page 63 TITLE 11—BANKRUPTCY § 342 Editorial Notes AMENDMENTS 2005—Subsec. (c). Pub. L. 109–8, § 413, inserted at end ‘‘Notwithstanding any local court rule, provision of a State constitution, any otherwise applicable nonbank- ruptcy law, or any other requirement that representa- tion at the meeting of creditors under subsection (a) be by an attorney, a creditor holding a consumer debt or any representative of the creditor (which may include an entity or an employee of an entity and may be a rep- resentative for more than 1 creditor) shall be permitted to appear at and participate in the meeting of creditors in a case under chapter 7 or 13, either alone or in con- junction with an attorney for the creditor. Nothing in this subsection shall be construed to require any cred- itor to be represented by an attorney at any meeting of creditors.’’ Subsec. (e). Pub. L. 109–8, § 402, added subsec. (e). 1994—Subsec. (d). Pub. L. 103–394 added subsec. (d). 1986—Subsec. (a). Pub. L. 99–554, § 212(1), substituted ‘‘the United States trustee shall convene and preside at a meeting of creditors’’ for ‘‘there shall be a meeting of creditors’’. Subsec. (b). Pub. L. 99–554, § 212(2), substituted ‘‘United States trustee may convene’’ for ‘‘court may order’’. Subsec. (c). Pub. L. 99–554, § 212(3), inserted ‘‘including any final meeting of creditors’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2005 AMENDMENT Amendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title. EFFECTIVE DATE OF 1994 AMENDMENT Amendment by Pub. L. 103–394 effective Oct. 22, 1994, and not applicable with respect to cases commenced under this title before Oct. 22, 1994, see section 702 of Pub. L. 103–394, set out as a note under section 101 of this title. EFFECTIVE DATE OF 1986 AMENDMENT Effective date and applicability of amendment by Pub. L. 99–554 dependent upon the judicial district in- volved, see section 302(d), (e) of Pub. L. 99–554, set out as a note under section 581 of Title 28, Judiciary and Judicial Procedure. PARTICIPATION BY BANKRUPTCY ADMINISTRATOR AT MEETINGS OF CREDITORS AND EQUITY SECURITY HOLDERS Pub. L. 103–394, title I, § 105, Oct. 22, 1994, 108 Stat. 4111, provided that: ‘‘(a) PRESIDING OFFICER.—A bankruptcy adminis- trator appointed under section 302(d)(3)(I) of the Bank- ruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986 (28 U.S.C. 581 note; Pub- lic Law 99–554; 100 Stat. 3123), as amended by section 317(a) of the Federal Courts Study Committee Imple- mentation Act of 1990 (Public Law 101–650; 104 Stat. 5115), or the bankruptcy administrator’s designee may preside at the meeting of creditors convened under sec- tion 341(a) of title 11, United States Code. The bank- ruptcy administrator or the bankruptcy administra- tor’s designee may preside at any meeting of equity se- curity holders convened under section 341(b) of title 11, United States Code. ‘‘(b) EXAMINATION OF THE DEBTOR.—The bankruptcy administrator or the bankruptcy administrator’s des- ignee may examine the debtor at the meeting of credi- tors and may administer the oath required under sec- tion 343 of title 11, United States Code.’’ § 342. Notice (a) There shall be given such notice as is ap- propriate, including notice to any holder of a community claim, of an order for relief in a case under this title. (b) Before the commencement of a case under this title by an individual whose debts are pri- marily consumer debts, the clerk shall give to such individual written notice containing— (1) a brief description of— (A) chapters 7, 11, 12, and 13 and the gen- eral purpose, benefits, and costs of pro- ceeding under each of those chapters; and (B) the types of services available from credit counseling agencies; and (2) statements specifying that— (A) a person who knowingly and fraudu- lently conceals assets or makes a false oath or statement under penalty of perjury in connection with a case under this title shall be subject to fine, imprisonment, or both; and (B) all information supplied by a debtor in connection with a case under this title is subject to examination by the Attorney Gen- eral. (c)(1) If notice is required to be given by the debtor to a creditor under this title, any rule, any applicable law, or any order of the court, such notice shall contain the name, address, and last 4 digits of the taxpayer identification num- ber of the debtor. If the notice concerns an amendment that adds a creditor to the sched- ules of assets and liabilities, the debtor shall in- clude the full taxpayer identification number in the notice sent to that creditor, but the debtor shall include only the last 4 digits of the tax- payer identification number in the copy of the notice filed with the court. (2)(A) If, within the 90 days before the com- mencement of a voluntary case, a creditor sup- plies the debtor in at least 2 communications sent to the debtor with the current account number of the debtor and the address at which such creditor requests to receive correspond- ence, then any notice required by this title to be sent by the debtor to such creditor shall be sent to such address and shall include such account number. (B) If a creditor would be in violation of appli- cable nonbankruptcy law by sending any such communication within such 90-day period and if such creditor supplies the debtor in the last 2 communications with the current account num- ber of the debtor and the address at which such creditor requests to receive correspondence, then any notice required by this title to be sent by the debtor to such creditor shall be sent to such address and shall include such account number. (d) In a case under chapter 7 of this title in which the debtor is an individual and in which the presumption of abuse arises under section 707(b), the clerk shall give written notice to all creditors not later than 10 days after the date of the filing of the petition that the presumption of abuse has arisen. (e)(1) In a case under chapter 7 or 13 of this title of a debtor who is an individual, a creditor at any time may both file with the court and