The following are actual interrogatories served on one of our clients in a bankruptcy preference adversary proceeding.  This is a fairly typical set of interrogatories even though every law firm representing the trustee, plan adminisrator, creditors committee or other person charged with prosecuting bankruptcy preference collection actions.

One significant variable from law firm to law firm is the period of time for which the supplier is required to produce documents.  This period is called the “Applicable Period” in the following requests.  The Applicable Period is intended to pick up a significant period establishing a course of dealing between the Supplier and the bankrupt customer.  In most instances, the applicable period is between 1 and 2 years prior to the filing of the bankruptcy petition.

Additionally, you will see requests to “identify” payments or other transfers.  The information requested in this identification includes a great deal of detail.  For example, in the following requests, “identify” means:

The terms “identify,” “identity,” or identification” when used in reference to a payment or to a transfer of property means to set forth:

(1) If the payment or other transfer was completed in the course of a single day, state the date of that day;

(2) If the payment or other transfer was not completed in the course of a single day, state:

(a) The date the transferor sent the property to the transferee/recipient; and

(b) The date the transferee received the property;

(3) The method of payment or other transfer (i.e. check, cash, cashier’s check, wire transfer, etc.);

(4) If the payment or other transfer was by check, state:

(a) the date of the check;

(b) the amount of the check;

(c) the payer of the check;

(d) the payee of the check;

(e) the endorser of the check;

(f) the date the check was cashed or deposited; and

(g) if the check was returned for insufficient funds and was later redeposited, the date the check was returned, the date it was redeposited, and the date it was honored.

Finally, as discussed in the “Plain English Glossary of Bankruptcy Preference Terms”, the term “Transfer” is broadly defined as follows:

The term “Transfer” refers to any payment(s) made by the Debtor to the Defendant during the Applicable Period (as defined herein), including, but not limited to, any funds, property, or other value conveyed to you by check, wire transfer, debit, credit to your account, the return to you of inventory or other property, or by any other means during the Applicable Period, by the Debtor, or otherwise satisfied an obligation owed to you by the Debtor.

INTERROGATORIES

1. State Your full name and Your mailing and business addresses.

2. State any name(s), including trade names, used by You during the two years prior to and including [the bankruptcy filing date].

3. Identify every payment or other transfer from the Debtor to You directly or indirectly during the Preference Period, specifically noting any Transfer appearing on Exhibit “A” to the complaint that You assert you did not receive or received outside of the preference period.

4. Identify every payment or other transfer from the Debtor to You directly or indirectly during the Applicable Period, exclusive of any Transfer appearing on Exhibit “A” to the Complaint,.

5. Were any of the Transfers identified in Your answers to interrogatory numbers 4 and 5 secured by a lien, mortgage, or other security agreement?

6. Were any of the Transfers identified in Your answer to Interrogatory numbers 4 and 5 received in a form other than non-certified checks? If so, identify each such Transfer and the form in which it was received.

7. If You are claiming that any of the transfers identified in Your answer to Interrogatory number 3 were made in the ordinary course of business, describe all facts and documents which support Your claim, including but not limited to (a) all payments, including wire or other transfers of funds or assets, by Debtor to you during the one year period before the Petition Date; (b) for each such transfer, identify the invoice to which the transfer was applied and the due date by which that invoice was required to be paid; and (C) when You received the transfer.

8. If You are claiming that the Debtor received subsequent New Value on account of the transfers identified in Your answer to Interrogatory Number 3, describe in detail all facts which support Your claim, including but not limited to the specific shipments and invoices that support your claim of subsequent New Value.

9. If You are claiming that the Debtor received subsequent New Value on account of the transfers identified in Your answer to Interrogatory Number 3, identify which invoices representing such new value were paid and which invoices were unpaid as of [the date of filing of the bankruptcy petition].

10. If Your answer to Request For Admission Number 3 is not an affirmative admission, i.e., “Admit”, set forth all facts upon which You rely for Your response to or denial of the Request for Admission and describe the inquiry You conducted in arriving at such response.

11. If Your answer to Request For Admission Number 4 is not an affirmative admission, i.e., “Admit”, set forth all facts upon which You rely for Your response to or denial of the Request for Admission and describe the inquiry You conducted in arriving at such response.

12. If Your answer to Request For Admission Number 5 is not an affirmative admission. i.e., “Admit”, set forth all facts upon which You rely for Your response to or denial of the Request for Admission and describe the inquiry You conducted in arriving at such response.

13. If Your answer to Request For Admission Number 6 is not an affirmative admission, i.e., “Admit”, set forth all facts upon which You rely for Your response to or denial of the Request for Admission and describe the inquiry You conducted in arriving at such response.

14. If Your answer to Request For Admission Number 7 is not an affirmative admission. i.e., “Admit”, set forth all facts upon which You rely for Your response to or denial of the Request for Admission and describe the inquiry You conducted in arriving at such response.

15. If Your answer to Request For Admission Number S is not an affirmative admission, i.e., “Admit”, set forth all facts upon which You rely for Your response to or denial of the Request for Admission and describe the inquiry You conducted in arriving at such response.

16. If Your answer to Request For Admission Number 13 is not an affirmative admission, i.e., “Admit”, set forth all facts upon which You rely for Your response to or denial of the Request for Admission and describe the inquiry You conducted in arriving at such response.

17. If Your answer to Request for Admission Number 14 is not an affirmative admission, i.e., “Admit”, set forth all facts upon which You rely for Your response to or denial of the Request for Admission and describe the inquiry You conducted in arriving at such response.

18. Set forth all facts and identify all documents supporting any defense You may have to the Complaint pursuant to 11 U.S.C. § 547(c)(1) (i.e., the “contemporaneous exchange for new value exception”).

19. If You contend that any Transfer fixed a “statutory lien that is not avoidable under 11 U.S.C. § 545,” as that term is used in 11 U.S.C. § 547(c)(6), please state the facts that support Your contention and apply those facts to the applicable law.

20. State Your policy of payment terms for any and all of Your other customers during the Applicable Period.

21. Identify all person(s) with knowledge of Your credit, billing, accounts receivable and/or collection practices during the Applicable Period, including any person(s) with knowledge of the Transfers and the transactions relating thereto.

21 Identify Your ten (10) largest customers (by dollar amount of business transacted therewith) during the Applicable Period.

23. Identify Your SIC (Standard Industrial Classification Code) and whom You consider to be Your five (5) closest business competitors during the fifteen (15) month period preceding the Petition Date.

24. If You took any actions in the Applicable Period as a result of the existence of a debt owing to You from Debtor, including, by way of example only, the following: (a) refuse to deliver any goods or services to Debtor; (b) suspend the performance of any services for Debtor; (c) undertake any efforts to collect amounts due from Debtor (e.g., calls, letters, demands, threats, liens, litigation, etc.); (d) impose any new payment terms upon Debtor; (e) impose any conditions upon the delivery of goods, services or other things of value to Debtor; (f) increase the price of any goods, service or other thing of value being provided to Debtor; or (g) inform Debtor that You intended to undertake any collection activity; describe in detail all acts taken, and identify all documents and communications related thereto.

25. Identify each person who participated in preparing Your responses to these Interrogatories, identifying the particular Interrogatory(ies) with which the person assisted?