What is a “debtor’s exam” in a Chapter 11 bankruptcy?

A debtor’s exam in a Chapter 11 bankruptcy is a hearing in which the debtor is questioned about their financial activities as part of the bankruptcy process. This hearing is held before a bankruptcy judge and the debtor must answer questions under oath. During the hearing, the judge will ask questions to gather information about the debtor’s financial affairs, including the debtor’s assets, liabilities, income, expenses, pending lawsuits, and any fraudulent or preferential transfers made before the bankruptcy filing. The purpose of the debtor’s exam is to ensure that all of the relevant information has been disclosed to the court. The exam is also used to determine if the debtor has any assets that can be used to repay creditors. If the debtor fails to answer the questions truthfully or fails to appear at the hearing, they may be subject to sanctions or a finding of contempt of court. In North Carolina, the debtor’s exam will be scheduled after the debtor has filed for Chapter 11 bankruptcy protection. This hearing usually occurs shortly after the petition is filed and can last for several hours, depending on the complexity of the case.

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What is a “debtor’s exam” in a Chapter 11 bankruptcy?

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