What is a Bankruptcy Rule 2004 Examination?

by DeLadurantey Law Office, LLC on November 12, 2014

Atty mtgIf you are considering filing a personal bankruptcy, you are probably reading lots of articles and blogs on how to prepare for your case. You most likely have read about the meeting of creditors, which is required under the Bankruptcy Code. What you may not be aware of, however, is that a creditor who wants to ask more than a few questions at the 341 meeting can file a motion with the court asking for a Rule 2004 examination. This type of examination is similar to a deposition in civil court cases.

Rule 2004 examinations are not a common occurrence, but they are sometimes necessary if your finances are complex or a creditor is suspicious about certain transactions. A debtor can simply agree to meet with the creditor to answer questions. If the creditor feels that the debtor is not likely to appear, it can issue a subpoena mandating the debtor’s appearance. Ignoring a subpoena could result in sanctions being assessed against the debtor. In more severe cases, the creditor can request an order to compel the debtor’s appearance, which is enforced by the U.S. Marshal.

During a Rule 2004 exam, the creditor is allowed to ask you in-depth questions about your finances. It is important to be honest and cooperative. It is also important to have an attorney on your side. If you have been served with a subpoena to appear at a Rule 2004 exam, you should immediately contact us for assistance. Many bankruptcy lawyers exclude representing their clients in Rule 2004 examinations from their retainer agreements.

At DeLadurantey Law Office, LLC, we help businesses and families find their way out of highly difficult financial situations. We provide the advice and guidance you need in obtaining debt relief through bankruptcy and debt negotiations. We can also assist you in student loan law and defending a foreclosure action. Contact us at 414-377-0518 to discuss how our Milwaukee bankruptcy attorneys can assist you. Like us onFacebook.

 

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