Adversary Proceedings during Bankruptcy
Information on Adversary Proceedings in Charlotte
Some bankruptcy cases are less straightforward than others. In some circumstances, one party may object to a part of the bankruptcy, such as a creditor claiming that a debt should not be forgiven because of fraud or when a creditor has reason to believe that the bankruptcy filer is abusing the system.
The procedure in which this occurs is called an adversary proceeding. An adversary proceeding in a bankruptcy case arises when there is a dispute relating to certain debts. This is a formal objection or complaint that is held in front of a judge through a series of hearings or a trial. The adversary proceeding can be filed by a creditor, the bankruptcy trustee, or the debtor.
Not many bankruptcy cases involve adversarial hearings. But when a dispute does surface, it is important to be represented by a skilled bankruptcy lawyer. At the Law Office of Kimberly A. Sheek, I have substantial experience resolving disputes regarding bankruptcy debt in adversary hearings. As a Charlotte bankruptcy lawyer, I can navigate the intricate legal process with you and fiercely advocate on your behalf.
Common Reasons for Adversary Hearings in Bankruptcy
Most adversary hearings are initiated due to a dispute regarding the dischargeability of particular debts.
Some common reasons for adversary hearings in a bankruptcy case include the following:
- A creditor may try to prevent certain debts from being discharged. If a debt was incurred right before filing bankruptcy, the creditor can claim intent to defraud.
- A bankruptcy trustee can claim that the debtor lied on bankruptcy papers, hid assets, or attempted to abuse the system to prevent a discharge.
- A debtor can file an adversary hearing to eliminate a second mortgage or to hold creditors liable for continuing collection efforts despite the automatic stay.
- A former spouse can attempt to seek to recover payments for jointly acquired debt that was required in a divorce settlement.
Dealing with an Adversary Proceeding
If you have filed for bankruptcy, the creditor may challenge a debt discharge. Since the dischargeability action is, in fact, a lawsuit against you, it is important to take prompt action and take it seriously. Your best bet will be to get the legal help of a Charlotte bankruptcy attorney to walk you through the adversary proceeding.
Guidance for Your Adversary Proceeding in Charlotte
The Law Office of Kimberly A. Sheek can provide hands-on guidance through each step of the bankruptcy process. I am a fierce litigator who can vigorously advocate for you in court and protect your financial interests.