In a bankruptcy case, you are required by the court to reveal all information that is deemed necessary. This includes all your debts, assets, income, expenses, etc. In addition, you will be required to attend a 341 meeting, where your creditors will ask you further questions (HYPERLINK: 341 Meeting article). Usually, the interested parties, such as your creditors or the court trustee, may be satisfied with the information you provide. However, in case they wish to investigate matters further regarding your bankruptcy case, they will schedule a special session called a 2004 examination.
What is a 2004 Examination in Bankruptcy?
A 2004 exam is a formal session that allows the interested party to acquire any information that they may want regarding your bankruptcy case. A 2004 examination meeting can cover a broad range of issues, which can include but are not limited to:
- Your financial information such as the location of your assets and recent transactions
- Your actions relating to your bankruptcy case, e.g., whether you committed fraud
- Your debts
- Any key information that can be used in an adversary proceeding
- Any matter that may impact your right to a discharge
In a 2004 examination, the interested parties could also bring in anyone that has knowledge relating to your bankruptcy. Any witness subject to the session will not always be entitled to an attorney, and their right to object to any questions asked may be restricted.
The 2004 Examination Process
Because of the potential for abuse, an interested party is not automatically given the right to conduct a 2004 exam. Rather, they have to request it from the bankruptcy court by filing a motion. The party requesting a 2004 exam must convince the court that they have a ‘just cause’ for holding the session. If the motion is approved, the court will then issue an order, informing you or another witness of the date and time of when the session will take place.
A 2004 exam can also be requested by you, and it can be advantageous to do so in certain cases, such as challenging the basis of a creditor’s potential adversary claim. It is also important to know that once an adversary claim has been filed, then a 2004 Exam can no longer be used to get information from the parties involved in that proceeding. Instead, the process will be conducted in a separate adversary lawsuit with its own set of rules.
Hire a Bankruptcy Attorney
You don’t have to confront your creditors alone in a bankruptcy case. An experienced legal professional can guide you through the long-drawn and complicated bankruptcy process and ensure a favorable outcome. To hire an attorney from our office or for any inquiries, call 512-640-3440. For more information, speak with an experienced bankruptcy attorney – schedule your free 1-hour consultation today: https://seanflynnlaw.com/calendar/