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2021 Stroock Bankruptcy Guide

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28 parties. Accordingly, in addition to the rules of discovery incorporated into the Bankruptcy Rules that are applicable in adversary proceedings and contested matters, the Bankruptcy Code and Bankruptcy Rules also include certain provisions governing the ability of one party to otherwise examine another party in the context of a bankruptcy proceeding. Although certain of these provisions govern all parties in a bankruptcy, there are additional provisions which apply to only the debtor. 1. Rule 2004 Examinations Pursuant to Bankruptcy Rule 2004, upon the motion of a party in interest, the court may order the examination of any entity (a "Rule 2004 Examination"), including, without limitation, the debtor or debtor-in-possession, creditors of the debtor and relatives of the debtor. In addition, Section 343 of the Bankruptcy Code requires the debtor to appear and submit to examination at the meeting of creditors held under Section 341 (see discussion below at Chapter III.H.2.), and the scope of this examination is governed by Rule 2004. Section 343 does not address the examination of anyone besides the debtor, and the examination of third parties is governed solely by Bankruptcy Rule 2004. In relevant part, Bankruptcy Rule 2004(b) provides, "[t]he examination of an entity under this rule or of the debtor under ยง 343 of the Code may relate only to the acts, conduct, or property or to the liabilities and financial condition of the debtor, or to any matter which may affect the administration of the debtor's estate, or to the debtor's right to a discharge." In reorganization cases, such examinations may also "relate to the operation of any business and the desirability of its continuance, the source of any money or property acquired or to be acquired by the debtor for purposes of consummating a plan and the consideration given or offered therefor, and any other matter relevant to the case or to the formulation of a plan." Id. As a general matter, Rule 2004 Examinations "are appropriate for revealing the nature and extent of the bankruptcy estate and for

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