Suggested questions for the upcoming § 341 meeting of creditors

General
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11 U.S.C. § 341 provides that every Chapter 7 debtor must appear for examination by creditors and the trustee. The lines below are drafted as professional inquiries that any creditor may pose to the debtor’s representatives or to the Chapter 7 trustee.

A. Questions directed to the debtor’s principals or counsel

  1. Post-petition use of assets
  • Have any assets, contracts, intellectual-property rights, or customer lists belonging to the estate been used, licensed, pledged, or optioned since the petition date?
  • If so, provide dates, counterparties, consideration received, and authority for each transaction.
  1. Formation of new ventures
  • Identify any entities organized, financed, or managed by current or former insiders since one year pre-petition.
  • State whether any estate property, goodwill, or ongoing business opportunities have been—or are expected to be—rolled into those entities.
  1. Goodwill and “going-concern” value
  • Does the debtor contend that its brand, trade name, or vendor relationships retain value that could be monetized?
  1. Insider transfers and set-offs
  • List all payments, pledges, or asset transfers made to insiders or insider-controlled entities during the two years before filing.
  • Were any liabilities of insiders satisfied with company funds during that period?
  1. Capital-raising representations
  • Describe any statements made to investors or lenders in the 24 months before filing regarding lien, solvency, or use of proceeds.
  1. Books, records, and digital wallets
  • Where are the original accounting records and bank statements maintained?
  • Confirm that the trustee has full access and explain any gaps in data.
  1. Litigation claims and insurance
  • Identify all potential causes of action (e.g., professional-malpractice, D&O, or fraud claims) that could be pursued for the estate’s benefit.
  • List all insurance policies (including D&O and E&O) that may respond to those claims.
  1. Real property and personal guarantees
  • Disclose any real-estate holdings acquired or improved since January 2024 by insiders or their affiliates, and whether estate funds or collateral were used.
  • Identify all personal guarantees executed by insiders in connection with debtor obligations.

B. Matters the trustee may wish to address

  1. Avoidance actions – Will the estate pursue preferences (§ 547) or fraudulent transfers (§§ 548-549) arising from insider repayments or asset migrations?
  2. Turnover and § 542 demand letters – Has the trustee requested turnover of books, records, or property now in the hands of insiders or new entities?
  3. Substantive consolidation / alter-ego theories – Given the overlap of management and assets, does the trustee foresee seeking consolidation of insider-controlled entities into the estate?
  4. Oversight of post-petition activity – What safeguards are in place to prevent unauthorized use of estate IP, brand names, or work-in-progress in any new venture?
  5. Retention of special counsel – Is the trustee considering hiring litigation or corporate-finance specialists to value intellectual property, investigate asset flows, or pursue D&O claims?
  6. § 363 sale strategy – Will the trustee market the film library, option agreements, or litigation claims in a structured sale process? Outline anticipated timelines.
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A. Personal Expenditures and Commingled Lifestyle

  1. Categorization of Personal Benefits: For the 36 months preceding the bankruptcy filing, identify all country club memberships, vehicles, vehicle leases for personal use, tickets to sporting events, meals such as breakfasts, lunches, dinners paid for by the company and tuition payments for family members that were paid directly by the company. How were these items categorized on the company’s books and tax returns?

  2. Use of Credit and Debit Cards: List all credit cards in your name or the names of immediate family members for which the monthly bill was paid, in whole or in part, by the debtor entity.

  3. Third-Party Payments: Did the debtor entity ever make direct payments for personal services rendered to you or your family, such as for household staff, personal trainers, or private travel arrangements?

  4. Undocumented “Loans” to Insiders: Were you ever provided with cash or funds from the company that were documented as “loans” or “advances” but for which no promissory note was signed and no repayment schedule was ever established?

  5. Why were the salaries marked as ‘owners draw’ and not salary? Was this to specifically induce investors based on making the profit and loss more attractive? Why were these salary payments classified as balance sheet transactions?

B. Digital Assets and Communications

  1. Cloud Storage and Data Access: Identify all cloud storage accounts (e.g., Dropbox, Google Drive, Box, iCloud) used to store any business or personal financial documents in the last two years, and confirm whether the trustee has been given login credentials for each.

  2. Encrypted Communication: Have you used encrypted messaging applications, such as Signal, Telegram, or WhatsApp, to discuss business operations, asset transfers, or financial strategy with business partners or advisors? If so, are those records available?

  3. Cryptocurrency and Digital Wallets: Disclose any cryptocurrency wallets, exchange accounts (like Coinbase), or digital tokens you or any insider has owned or controlled since January 2023.

  4. Personal Devices for Business Use: Were any personal laptops, tablets, or mobile phones used to conduct company business? If so, have those devices been imaged or turned over to the trustee for inspection?

C. Undisclosed Third Parties and Future Assets

  1. Wealth and Asset Protection Advisors: Identify any wealth managers, estate planners, or offshore financial consultants you have engaged for advice on asset protection or trust formation in the last three years.

  2. Contingent and Future Interests: Are you or your spouse the current or contingent beneficiary of any trust, will, or life insurance policy? Disclose any expected inheritances or future payouts.

  3. Intellectual Property in Development: At the time of filing, was any intellectual property, such as screenplays, business plans, or software code, in development but not yet formally titled to the debtor entity? If so, where is this IP now?

  4. Transfers to Family and Friends: In the two years prior to filing, did you transfer any assets valued over $5,000—including cash, vehicles, or artwork—to non-insider family members or friends, either as gifts or for less than market value?