What are Bankruptcy Meetings or Meetings of Creditors?

Bankruptcy Meetings are usually called in complex cases by the trustee who administers the bankruptcy. There are very strict rules and procedures for meetings of creditors. A trustee in bankruptcy may call a meeting of creditors to discuss the progress of the bankruptcy. If a trustee in bankruptcy was considering to proceed with a complex case, the trustee may consider calling a meeting of creditors to find out the creditors’ views. In most cases the trustee will consider the views of creditors but they do not need to follow their decision.

Can a creditor request the trustee to call a meeting of creditors?

 Under the new bankruptcy laws creditors can request the trustee to call a meeting if the required number of creditors want a meeting to be held. Depending on the number of creditors requesting the meeting will determine if the creditors need to pay for the meeting:

1. If 25% or more of the creditors want the meeting then the trustee must call the meeting at no cost.
2. If less than 25% of the creditors want the meeting then the trustee can ask the creditors to pay for the cost of the meeting.

If you are a creditor in a bankruptcy, it’s important to know your rights under the new bankruptcy laws. At Australian Bankruptcy Services we offer a FREE 24 hour / 7 days a week bankruptcy advice line. Call us now on 1800 462 767 for in-depth advice on bankruptcy and how it might affect you. All calls are free and entirely confidential.