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

A debtor’s exam is a type of hearing that takes place during a Chapter 11 Bankruptcy in Arizona. During the debtor’s exam, a court appointed trustee will question the debtor (person filing for bankruptcy) about their assets, liabilities, income, and expenses. The trustee needs to get a detailed overview of the debtor’s finances in order to determine the best way to reorganize the debtor’s debts and pay back creditors. During the debtor’s exam, the trustee may ask about the debtor’s sources of income, debts, whether they have any large assets like a home or car, and what their financial goals are. The debtor must answer all of the questions honestly and accurately. If the debtor lies or omits any information, they may face legal penalties. The trustee also may require the debtor to provide financial documents that provide more information about their financial standing. These documents can include anything from bank statements to tax returns. It’s important that the debtor bring all of the necessary documents to the hearing or they may face additional penalties. After the hearing is completed, the trustee will then present all of the information they have gathered to the court for review. The court uses this information to decide on what type of repayment plan the debtor should enter into. Once the plan is approved, the creditors can start to receive the payments as per the agreement.

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

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