Hire Chapter 7 Bankruptcy Attorneys in East Grand Forks MN When Facing an Adversary Complaint

Posted By : Aubrey Mead , on May, 2016

 

In Chapter 7 bankruptcy, a person can eliminate many of their debts. However, an adversary complaint can complicate the process. Adversary complaints are lawsuits filed during bankruptcy, by creditors seeking relief. Although the complaint is part of the case, it has a separate case number. These complaints explain the case’s facts and ask the court to enter judgment in favor of the plaintiff.

Reasons for Adversary Complaints

* Adversary complaints are filed for a variety of reasons during Chapter 7 bankruptcy cases, such as:

* When the creditor objects to a debt or multiple debts that are up for discharge

* Potential transfers

* When a jointly held piece of property is sold

* Fraudulent transfers

* Lien stripping

An adversary complaint can be filed for other reasons, and a local bankruptcy attorney with krausparrlaw.com can help a debtor determine why they’re facing such a complaint.

Who May File Adversary Complaints?

Three parties may file an adversary complaint during a Chapter 7 bankruptcy: the creditor, the court-appointed trustee or the debtor. Those needing help filing an adversary complaint can ask chapter 7 bankruptcy attorneys in East Grand Forks MN for help and advice.

If the Defendant Does Not Respond to an Adversary Complaint

If the defendant does not answer the petitioner’s complaint by the legal deadline, a default judgment is issued in the other side’s favor, and the debt may not be discharged.

Why do Creditors or Trustees File Adversary Complaints?

Creditors file adversary complaints about many reasons, but they are usually filed because the creditor does not want to have their debt discharged during Chapter 7 bankruptcy proceedings. Trustees usually file to petition for the dismissal of the bankruptcy case. Bankruptcy petitions may be dismissed for any or all of the reasons listed below.

* Intent to defraud

* Inadequate scheduling

* The debtor misses a 341 meeting without offering a legitimate reason

* The creditor wants to collect their property or money

* Fraudulent transfer of money or assets

 Does a Receiver of an Adversary Complaint Need, an Attorney?

Bankruptcies are complex affairs, and they are further complicated when a creditor or trustee files an adversary complaint. Those facing such complaints will need to hire separate chapter 7 bankruptcy attorneys in East Grand Forks MN to handle this part of the case.

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