Adversarial Bankruptcy Matters

ADVERSARY MATTERS?
Adversary Claim by a Creditor. The majority of Chapter 7 cases do not involve adversary matters; however, if a creditor believes it should not be discharged, it may file, or threaten to file, an Adversary Case against you during the bankruptcy proceeding. The most common grounds for the filing an adversary case is “fraud.” Fraud in this context is not criminal, but it means that you allegedly have abused the bankruptcy process. For example, if you used credit to buy property or take cash advances prior to filing bankruptcy when you were insolvent, did not anticipate repaying the debt, or planned to file bankruptcy, this could be grounds to set aside a discharge of debt for fraud, and the creditor may have a basis to file an adversary case.
Adversary Claim by Trustee. The Trustee may also file an adversary case to recover non-exempt property. A Trustee may also file a motion to value property which he believes you have undervalued in order to exempt under your $1,000 personal property exemption. If the Trustee convinces the court to increase the property value, he can then recover any of your property in excess of your exemption limit.

Trustee’s Objection to Exemptions. The Chapter 7 bankruptcy trustee has 30 days after the creditors meeting to object to any exemption of property claimed on your bankruptcy petition. Absent trustee objection, all property listed as exempt, including your homestead exemption, is exempted in bankruptcy and is not part of your bankruptcy estate. If the trustee objection to a claimed exemption, the court will set a hearing to rule on your exemption. Absent objection by the trustee all assets claimed as exempt on your bankruptcy petition are protected. When do I get my discharge?

Bookmark and Share

Popularity: 4% [?]

The hiring of a lawyer is an important decision that should not be based solely upon advertising. Nothing herein creates an attorney-client relationship as each contract to retain our services must be in writing signed by both parties. This site is intended for informational purposes only and not as legal advise for your situation as each case is unique.