Interrogatories in Preference Action

Summary

This interrogatories template is for use by a plaintiff that is seeking discovery in a preference action. This template includes practical guidance, drafting notes, and an optional clause. Section 547(b) of the Bankruptcy Code sets forth the required elements that a trustee or debtor-in-possession (or other party with standing to bring a preference action) must establish to recover a preferential payment. Section 550 of the Bankruptcy Code authorizes the trustee to avoid and recover the transferred property or its value from the transferee post-petition. Section 502(d) requires a court to disallow a creditor’s claim if the estate is entitled to recover property from that creditor, including as a result of a voidable preference, and that creditor has failed to first transfer the property back to the estate. Interrogatories are a frequently used discovery device, consisting of written questions propounded by one party to another. Interrogatories may relate to any matter, not privileged, ...