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

A debtor’s exam, or a § 341 meeting, is a hearing conducted by the bankruptcy trustee in a Chapter 11 bankruptcy case. The purpose of the hearing is for the trustee to ask the debtor questions about their financial situation, their assets, and their debts. The debtor is legally obligated to answer all questions truthfully. The trustee will also typically allow creditors to ask the debtor questions at the hearing. This hearing is the first step in the process and is typically one of the earliest hearings in a Chapter 11 bankruptcy. The trustee’s goal is to make sure that the debtor is being honest about their finances and that all information they provide is accurate. The trustee wants to ensure that creditors are getting the money that they’re due, and that the debtor is representing their financial situation accurately. The debtor’s exam is important because it helps the trustee decide whether the debtor is eligible to file for Chapter 11 protection. The examiner also looks for any fraudulent activities that the debtor might have committed before filing for bankruptcy. This is an important step in the process and it helps to maintain the integrity of the bankruptcy system.

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

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