Adversary Proceedings in a Bankruptcy Case

Bankruptcy Lawyer in Savannah GA

An adversary proceeding is a contest between two parties in the court of law. An adversary proceeding in a bankruptcy case can be filed by three parties – creditor, debtor and the trustee. In proceedings initiated by each of these, judge makes the final decision about issues. The entire bankruptcy adversary proceeding can seem to be very intimidating especially since debtors do not usually get to see the judge.

An adversary proceeding when filed by the creditor indicates that he doesn’t want debt owed to him getting discharged in a bankruptcy proceeding. The creditor would have many factors in his favor such as claims that the debt comes under one of the exceptions to discharge which could be debt through fraud, drunken driving injury, willful injury, etc. Another point of argument that creditor might adopt would be that filing of bankruptcy was not in good faith. It is wise to honestly inform your bankruptcy attorney everything with respect to your debts and properties. This would give him time to be prepared in the event of an adversary proceeding.

A debtor can file an adversary proceeding against a creditor. He has the right to recover damages caused as a result of creditor’s actions which were in violation with US Bankruptcy Code. Like for instance, automatic stay, discharge of injunction etc.

An adversary proceeding can be filed by United States trustee or a chapter trustee. The trustee can file for a myriad of reasons. He can claim that schedules are not accurately filled; intentional fraud was committed, etc. He retains the right to file for a dismissal if the paperwork is not filed and submitted on time, or if they are not properly filled, or even if debtor absconds one of the court dates without valid reason.

The trustee can file an adversary proceeding in order to collect money from creditor who has received funds from debtor. The same can be filed for reversing a transfer of real estate property. The trustee can easily get motions passed as he has more powers than the debtor.

A US Trustee can force a move from chapter 7 to chapter 13 by filing an adversary proceeding if he feels that bankruptcy filing was done in bad faith. He can also dismiss the case in the same way if he feels that bankruptcy law system is being abused in any way.

Adversary proceedings also follow same nuances of any case filed in court. There is no guarantee that the person who files the case will win. The final decision is on the discretion of the judge presiding over the case. Your bankruptcy attorney might be able to predict the outcome of an adversary proceeding but the judges ruling is final.

Call an experienced Savannah bankruptcy lawyer if you are considering bankruptcy.