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

A debtor’s exam in a Chapter 11 bankruptcy is a hearing that a debtor must attend. In this hearing, the debtor is questioned under oath by the trustee in the bankruptcy case, a lawyer for creditors, or any other person named in the bankruptcy court order as authorized to conduct the debtor’s examination. The questions asked will be about the debtor’s financial affairs such as the debtor’s employment and income, the nature and value of their assets, any transfer of property they may have made in the recent past, the amount and source of their liabilities, and the names and addresses of their creditors. The debtor must answer all questions honestly and to the best of their knowledge. The purpose of the exam is to provide the trustee with more information about the debtor’s financial circumstances and to make sure that the debtor is disclosing all relevant information. A debtor’s exam is also a way for the trustee to monitor the debtor’s overall financial situation during the bankruptcy process. In Virginia, and most other states, the debtor’s exam typically takes place at the office of the U.S. Trustee. The debtor is given notice of the date, time, and location of the exam prior to the actual hearing. It is important for debtors in a Chapter 11 bankruptcy filing to take the debtor’s exam seriously and to show up prepared.

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

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