What Is A Bankruptcy Adversary Proceeding?
The Bankruptcy Adversary Process
Clients frequently ask what is an Adversary Proceeding in a Bankruptcy Case? It is somewhat difficult to explain to someone unfamiliar with the Bankruptcy Process, but it can best be described as a separate lawsuit filed in your Bankruptcy Case to deal with specific issues regarding dischargeability of debts, avoidance of liens and fraudulent transfers and objections by the Trustee to Discharge.
The Bankruptcy Adversary Proceeding is commenced, like any other lawsuit, through the filing of an Adversary Complaint. The Debtor then has opportunity to file an Answer to the Complaint. If no answer is filed, the Court will enter an Order granting Judgment by default to the Plaintiff.
Common Types of Bankruptcy Adversary Proceedings
The most common types of Bankruptcy Adversary Proceedings are filed by Creditors attempting to render a debt non-dischargeable because the debt was incurred by means of fraud either in obtaining the debt in the first place or by running up the balance on their account shortly before filing their bankruptcy petition. This article explains the dangerous of incurring debt shortly before filing your bankruptcy petition.
Bankruptcy Adversary Proceedings filed by the Trustee
Trustees, both the standing Trustee appointed to administer your case and the U.S. Trustee's Office, have standing to file an Adversary Proceeding objecting to you receiving a discharge of any of your debts. A common basis for this type of Adversary Proceeding is the concealment of assets or failing to make a full disclosure of your financial affairs in an attempt to gain an unfair advantage in the bankruptcy process. The Trustees can also file an Adversary Proceeding to revoke your discharge after it is entered if they find you engaged in fraud or fail to turn over non exempt assets, such as tax refunds, in a timely manner.
Planning Your Bankruptcy Filing to Avoid Adversary Proceedings
Before your case is filed, you should disclose to your Bankruptcy Attorney any large purchases or cash advance on credit cards as well as all property you have transferred within 4 years of filing you aBankruptcy Petition and make a full disclosure of your financial affairs. In this manner, your attorney can adequately plan the timing of filing your Bankruptcy Petition and frequently avoid problematic Adversary Proceedings from ever arising.
Contact us for a Free Bankruptcy Consultation
If you are suffering with financial problems, please call (513) 528-0200 or send an email to Info@CincinnatiBankruptcy.com. You can also contact us with through our website.
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