What is an adversary proceeding?

by DeLadurantey Law Office, LLC on April 30, 2014

BoxingThe majority of Chapter 7 and Chapter 13 bankruptcy cases are straight-forward and involve only minor issues, if any. There are rare cases that involve more significant issues that result in an adversary proceeding being filed. An adversary proceeding is a lawsuit filed within a bankruptcy case.

Typically, an adversary proceeding is filed by a creditor objecting to all or a portion of its debt being discharged. An adversary proceeding can also be filed to raise an objection that the debtor acted improperly in filing the bankruptcy case.

If the court agrees with the creditor that the debtor was not honest in his/her bankruptcy filing or that there is a valid reason the creditor’s debt should not be discharged, the individual debt may be ordered non-dischargeable or the court may discharge the entire case. If the entire case is discharged, the debtor will not be liable to pay all of his/her debts. If the court finds that fraud or another serious offense occurred, the debtor could be charged with crimes.

It is important to understand that if you are honest in your bankruptcy filing and make full financial disclosures, it is highly unlikely that an adversary proceeding will be filed in your case. Most creditors are unwilling to invest the time or expense of filing an objection in a debtor’s case unless they have a large claim against the debtor and the creditor believes they will be able to keep their debt from being discharged.

If an adversary proceeding is filed in your personal bankruptcy case, it is vital that you obtain legal assistance. We can help, call us today.

The “defender of the little guy,” DeLadurantey Law Office. LLC, handles bankruptcy matters (Chapter 7 and Chapter 13) in Milwaukee, South Milwaukee, West Milwaukee, and Milwaukee County, including the municipalities of Bayside, Brown Deer, Cudahy, Fox Point, Franklin, Glendale, Greendale, Greenfield, Hales Corners, Oak Creek, River Hills, Shorewood, St. Francis, Wauwatosa, West Allis, and Whitefish Bay.  The firm also can handle your debt negotiations, debt relief, and mortgage loan modifications.   Contact DeLadurantey Law Office, LLC by phone: (414) 377-0518.  Like us on Facebook.

 

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