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2021 Stroock Bankruptcy Guide

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31 2003(a). All creditors must be given at least twenty-one days' notice of the Section 341 meeting. FED. R. BANKR. P. 2002(a)(1). The purpose of the meeting is to enable the creditors to examine the debtor under oath, to elect a trustee (if appropriate) and, in a Chapter 7 case, to ensure that the debtor has a basic understanding of the effects of bankruptcy. To the extent that it would be beneficial or useful, the U.S. Trustee may also convene and preside at a meeting of any equity security holders to be held on a date fixed by the U.S. Trustee. 11 U.S.C. § 341(b); F ED. R. BANKR. P. 2003(b)(2). The bankruptcy court is not permitted to preside at or attend any meeting held under Section 341. Additionally, on the request of a party in interest (and after notice and a hearing), the court may order that the U.S. Trustee not convene a meeting of creditors or equity holders if the debtor has filed what is commonly referred to as a "pre-packaged" bankruptcy proceeding (see discussion below at Chapter VI.E.1.). 11 U.S.C. § 341(e). As noted above, the debtor must appear and submit to examination under oath at the Section 341 meeting of creditors. 11 U.S.C. § 343. At that time, creditors, any indenture trustee, any trustee or examiner in the case or the U.S. Trustee may examine the debtor. The fact that a debtor may not be an individual does not excuse it from appearing at the Section 341 meeting of creditors. If, for example, the debtor is a corporation, the individuals that manage the debtor and that are most knowledgeable about the debtor will typically appear and submit to examination on the debtor's behalf. As described in the preceding subsection, examination of the debtor is limited to matters which may affect the financial condition or discharge of the debtor or the administration of the debtor's estate. F ED. R. BANKR. P. 2004(b). Additionally, in cases commenced under Chapters 11 (except for railroad reorganizations), 12 or 13, the scope of an examination of the debtor may include any matter relevant to the case or to the formulation of a plan of reorganization, including the operation of any business, the desirability of continuance of any business, and the source of funds

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