It's safe to say that the vast majority of all bankruptcy cases proceed from filing to the final discharge with nary a hiccup. It might be helpful, though, for filers
Know the Major Players and Terms
When facing bankruptcy and a possible adversarial action, you need to understand some basic terms, like:
- The Federal Bankruptcy District is known by the area of the state that governs over cases for residents.
- The bankruptcy trustee is in charge of your case. They are not advocates for you nor are they necessarily adversarial. That being said, they are beholden to your priority creditors first and foremost.
- Creditors are the medical bills, personal loans, mortgages, landlords, auto loans, and other people you owe money to. Each creditor can take separate action against you, at least theoretically.
Examples of Adversarial Situations
Each of the below situations can result from an ordinary consumer bankruptcy filing. In many cases, the term adversarial action can mean a lawsuit is filed, but not the kind of lawsuit you can get a personal injury lawyer to help you with. Instead, your bankruptcy lawyer will work with you to resolve these issues and it's more about hearings and motions than testimony in court.
- Creditor Objections – Not all debt ends up being discharged. If a creditor comes forward and objects to a particular debt, some further court appearances may be in order. For example, some companies' legal representatives appear at the creditor's meeting to object to the inclusion of a charge the week prior to the filing. To show that they weren't taking advantage of the bankruptcy to use their credit card, the filer would show that the charge was for groceries or
- Trustee Objections – The trustee is charged with accumulating the property of the debtor, selling it, and paying some creditors (and themselves). That means taking a look back at the financial and property transfers of the filer to ascertain transfers or sales. In addition, the creditor reviews the payments made to creditors
inthe time leading up to the filing to make sure no one creditor got more than they should have.
The above are the common adversarial events in bankruptcy and they don't necessarily cause the filer undue problems. Speak to bankruptcy attorney services to find out more.