Gone Fishing: The Broad Reach of Bankruptcy Depositions

Filing bankruptcy is usually the end of the road for most collection efforts, but creditors can't know that for certain unless they take steps to learn more about the debtor. Debtors provide "free information" in the form of Schedules of assets and liabilities and a Statement of Financial Affairs. Creditors may also want to attend the meeting of creditors. Nobody wants to throw good money after bad, but if there's enough money at stake and the creditor has the means, deposing the debtor under Rule 2004 may provide an unexpected return on investment.

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