In the course of a bankruptcy action, a lawsuit may arise that is referred to as an adversary proceeding. It is initiated by filing a complaint with the court and may be filed for numerous reasons, including but not limited to objecting or revoking a discharge, determining the dischargeability of a debt, or to recover money or property of the debtor. Such proceedings are primarily governed by rules found in Part VII of the Federal Rules of Bankruptcy Procedure and may be initiated by the bankruptcy trustee or by a third party.
When such a proceeding is filed by a creditor, it is usually because the creditor is disputing that the debt owed should not be discharged. For example, the creditor may argue that the debt falls within one of the exceptions to discharge or that the bankruptcy filing was done in bad faith. When such a proceeding is filed by the bankruptcy trustee, it may be for a variety of reasons such as the paperwork being inaccurate and intentionally fraudulent or to undo a transfer of real property. The United States trustee may also file an adversarial proceeding to force the debtor to move from a Chapter 7 to a Chapter 13 filing if the trustee believes the filing was done in bad faith. In certain circumstances, it is also possible for a debtor to file an adversarial proceeding against a creditor.
If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy
