Bankruptcy Disputes & Litigation
Bankruptcy can bring unexpected disputes, from fraud-related debts that can’t be discharged to creditors attempting post-bankruptcy collections. Trustees may also seek hidden assets. When these conflicts arise, they often require an adversary proceeding—a separate lawsuit within the bankruptcy case. Our experienced attorneys are here to guide you through every step.
Bankruptcy Litigation:
The Adversary Proceeding
An adversary proceeding is a lawsuit within a bankruptcy case, often involving creditors, trustees, or debtors. While many bankruptcies are completed without one, some require litigation.
Navigating bankruptcy litigation requires deep expertise. An inexperienced attorney can risk a debtor’s discharge or a creditor’s ability to collect. Since 2001, our attorneys have successfully represented both debtors and creditors in U.S. Bankruptcy Court.
If you’re a creditor facing a bankruptcy notice or a demand letter from a trustee, time is limited. Protect your rights—contact us today!
Understanding Bankruptcy Litigation
Bankruptcy litigation can arise in various ways, involving trustees, creditors, and debtors. Here’s what you need to know:
Litigation Initiated by the Trustee Against Creditors or Other Parties
- Objection to Claims – The trustee can dispute a creditor’s right to payment on a proof of claim.
- Recovering Property – The trustee may reclaim assets, such as payments made to a creditor shortly before bankruptcy or property fraudulently transferred before filing.
Litigation Between Debtors and Creditors
- Dischargeability of Debt – Certain debts, like those obtained through fraud, may not be eliminated in bankruptcy.
- Objection to Discharge – Creditors can challenge a debtor’s right to discharge if fraud, such as hidden assets, is discovered.
- Claims Disputes – Debtors can contest a creditor’s right to payment on a proof of claim.
- Automatic Stay & Discharge Violations – Creditors cannot collect debts after a bankruptcy filing or discharge without court approval.
Litigation Initiated by the Trustee Against the Debtor
- General Discharge Challenges – If bankruptcy fraud is uncovered, the trustee can dispute a debtor’s right to discharge.
- Exemptions & Property Disputes – Trustees may challenge a debtor’s right to claim exempt property under bankruptcy laws.
If you’re facing bankruptcy litigation, our experienced attorneys can help. Contact us today for expert guidance!