Editing Openai/68543586-b3fc-8004-86a9-b3760b4894b0 (section)

=== Assistant: To give you the most accurate and strategic advice on proving that a company in Chapter 7 bankruptcy is hiding assets, … ===
To give you the most accurate and strategic advice on proving that a company in Chapter 7 bankruptcy is hiding assets, I’ll need a few key details about the situation. After that, I’ll walk you through how to spot red flags, gather evidence, and take legal action if necessary.

==== Here are the core facts that would help me assess your options: ====

===== - Full legal name of the company that filed for bankruptcy =====
* State where the company is incorporated or operated
* Chapter 7 case number and court district, if you have it

===== - Are you a(n): - Employee? - Independent contractor? - Distributor/agent/affiliate? =====
* Do you have a contract or commission agreement in writing?
* Were you issued 1099s or W-2s?

===== - What is the amount you (or other members) are owed? =====
* What has the company claimed on its bankruptcy schedules? (We can look at Schedule A/B for assets and Schedule E/F for debts.)
* Did the company suddenly claim it has no bank accounts, inventory, or property?

===== Let me know if any of the following applies: =====
* Assets were transferred to insiders or affiliates before the bankruptcy
* Company insiders started new companies using the same customers or assets
* Bank accounts were drained shortly before filing
* Members were promised payment, then suddenly told there are no funds
* Contracts or pay records disappeared

===== - Are there owners, executives, or affiliates you believe may have benefited personally? =====
* Has the company continued doing business under a different name?

==== Once I have the info above, here's how members might expose hidden assets: ====

===== Look at: =====
* Schedule A/B (assets)
* Statement of Financial Affairs (lists income, transfers, lawsuits)
* Schedules E/F (who they're claiming they owe)

These documents are filed under oath and can be contradicted by evidence.

===== Ask: =====
* Did the company transfer property to insiders or affiliates in the last 1–2 years?
* Did it sell assets for below market value?

These may qualify as fraudulent transfers under 11 U.S.C. § 548 or § 544(b).

===== You can: =====
* Check past tax filings, annual reports, or marketing materials showing what the company previously claimed to own.
* Review state UCC filings, real property records, or business registrations.
* Look for evidence of: - Bank accounts that aren’t listed - Ongoing operations under a different name

===== If you find evidence or strong suspicions, you can: =====
* File a letter or complaint with the Chapter 7 trustee
* Provide supporting documents (emails, transfers, invoices, etc.)
* In extreme cases, the trustee may initiate an adversary proceeding or refer for criminal investigation

===== Under Bankruptcy Rule 2004, creditors can ask the court to allow a formal investigation: =====
* You can subpoena documents
* You can question officers or insiders under oath
* Requires a motion and court approval, but a trustee may join or help

==== If many members are owed commissions, consider forming a creditor group with shared counsel. It increases leverage and may: ====
* Get the trustee’s attention
* Reduce legal costs if pursuing fraud claims or 2004 exams

Would you like help analyzing the company’s bankruptcy filings, or drafting a complaint letter to the trustee? If you provide the name of the company or case number, I can get started on that.