Rule 2004 examination

How it works

The rule limits the topics. They are what the debtor did and owns, what the debtor owes and the debtor's financial condition, anything that may affect how the bankruptcy estate is administered, and whether the debtor is entitled to a discharge. 1

In a Chapter 13 case the scope is wider. The examination may also cover the operation of any business and whether it should continue, the source of money or property the debtor will use to carry out a plan, and any other matter relevant to the case or to formulating a plan. 1

It is different from the meeting of creditors. That meeting is required, is run by a trustee with no judge present, and has the debtor answer questions under oath. A Rule 2004 examination happens only if the court orders one on someone's motion. 2 1

The person examined can be compelled by subpoena to attend and to produce documents or electronically stored information. The court may also, for cause, order the debtor to be examined at a designated time and place. 1

Because the examination can reach the debtor's right to a discharge, an order for one is a moment when the federal courts' general recommendation to get advice from a qualified attorney carries extra weight. 1 3