If your bankruptcy is challenged in an adversary proceeding, you will definitely want an experienced bankruptcy attorney on your side.
The majority of personal bankruptcy cases are relatively straightforward matters. This is especially true of Chapter 7 bankruptcies, where all unsecured debts are discharged and the creditors do not get repaid. But if you are filing Chapter 13 bankruptcy, which requires a repayment plan and provides for certain creditors to receive a portion of the money they are owed, matters can become a bit more complicated. It is possible—though not likely—that you could end up facing a bankruptcy adversary proceeding.
A bankruptcy adversary proceeding can occur if there are conflicting claims between creditors and debtor or the bankruptcy trustee. Basically, the proceeding is a lawsuit that is brought within the bankruptcy when a creditor is unhappy with the way a debt is being handled. They may think it is unfair for the debt to be discharged in the bankruptcy, or may think they deserve a larger repayment, or they may accuse the debtor of making fraudulent transfers prior to the bankruptcy to withhold assets from creditors.
The most common reasons for an adversary proceeding include:
- To recover money or property
- To determine the validity or extent of a lien
- To object to or revoke a discharge
- To revoke an order of confirmation of a repayment plan
Bankruptcy adversary proceedings are handled in civil court, and in most cases you can simply have your bankruptcy attorney represent you. After all, your bankruptcy attorney will already be familiar with the particulars of the case and prepared to represent your best interests in the adversary proceedings.
If a creditor files an adversary proceeding against you, you will receive a summons from the court clerk notifying you of the complaint. The adversary proceeding can be resolved in negotiations between the debtor and the creditor, or it can be argued in court so that a judge can make a decision in the matter.
Hire Your Bankruptcy Attorney Now
Bankruptcy proceedings can be complicated even if your bankruptcy is unchallenged. It is always in your best interests to consult an experienced bankruptcy attorney before filing, to make sure you meet all the requirements for the type of bankruptcy you are considering, you file your paperwork correctly and one time, and you receive maximum debt relief. To discuss your bankruptcy with a qualified attorney, please contact California Bankruptcy Relief at 951-755-1000.
