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, relevant to the claims and defenses of any party, and proportional to the needs of the case. The responding party must either answer the interrogatories in writing and under oath or object to them. The answers are admissions of a party and are otherwise admissible at trial to the extent permitted by the rules of evidence. Fed. R. Civ. P. 33(b) requires that you serve written objections and/or responses within 30 days of being served with interrogatories. There is a duty to provide information known by the client and counsel in response to the interrogatory. For a full listing of key content on important topics when litigating disputes in bankruptcy cases, see Bankruptcy Litigation Resource Kit. For more information on preference actions, see Preferences, Calculating Preference Defenses, and Fraudulent Conveyances versus Preference Actions. For related templates, see Complaint to Avoid and Recover Preferential Transfers, Answer to Preference Complaint, Request for Admissions in Preference Actions, Request for Production of Documents in Preference Actions, and Settlement Agreement for Avoidance Actions (Bankruptcy Rule 9019). For more information on interrogatories, see Interrogatories: Drafting and Serving Interrogatories (Federal) and Interrogatories: Responding to Interrogatories (Federal).