Adversary Proceedings in Bankruptcy
Illinois Bankruptcy & Debt Relief Attorneys
There are plenty of Chicago consumer lawyers who file bankruptcies, but
many of them cannot or will not represent you in adversary proceedings. Most
bankruptcy cases are smooth and painless, but what if there is a glitch? What if creditors
object? Adversary proceedings can delay or completely derail your bankruptcy
or expose your personal assets.
Sulaiman Law Group, LTD, routinely litigates in U.S. Bankruptcy Court.
We make every effort to keep our clients out of court, but we have the
experience and proven record in adversary proceedings to protect your
Do you anticipate that your bankruptcy will be challenged?
Contact us online
or call our Oak Brook office at
(312) 313-1613 to speak with our Illinois debt relief attorneys.
Chicago Bankruptcy Lawyers for Adversary Proceedings
An adversary proceeding is essentially a lawsuit filed within your bankruptcy case. It is initiated by filing a complaint with the bankruptcy court. Only
a creditor, a trustee, or the debtor can bring an adversary proceeding.
Only certain kinds of matters may be brought as an adversary proceeding.
Defending Debtors in Adversary Proceedings
A creditor may bring an adversary proceeding to keep the court from discharging
your debt. This is generally done if the debt falls within one of the
exceptions to a discharge or when the creditor believes that the bankruptcy
was filed in bad faith. A creditor may claim that you provided false information
or incurred the debt in anticipation of bankruptcy. Creditors can seek
relief from the
automatic stay, which allows them to resume collection efforts and legal proceedings such as
When a trustee files an adversary proceeding, it is generally because the
trustee wants to dismiss the case as a bad faith bankruptcy filing or
because the trustee wants to convert the case from a
Chapter 7 to a
Chapter 13 bankruptcy. Trustees may also use adversary proceedings to claw back payments
made to certain creditors before bankruptcy case filed. A Chapter 7 trustee
may use an adversary proceeding to return property to the bankruptcy estate.
In general, so long as you are honest with your attorney, and disclose
all of your financial affairs, you will not see an adversary proceeding
filed in your bankruptcy case. In the event that your petition is challenged, our experienced bankruptcy
litigators can represent you.
Initiating Adversary Proceedings Against Creditors
Debtors can also bring adversary proceedings. These are almost always brought against creditors for
violations of the automatic stay or the discharge injunction. Generally, an adversary proceeding brought
for a stay or discharge violation will also contain other claims based
on federal and state law. Your attorney can tell you which claims are
available to you. If your creditors are harassing you during or after
your bankruptcy case, you have the right to file an adversary proceeding.
Doing so protects your rights and can result in your collecting damages
for the creditor's misconduct.
As with any lawsuit, simply filing an adversary proceeding does not guarantee
victory. You must prove the elements of your claim. Fortunately, the same
goes for creditors and trustees who file adversary proceedings against
you. Adversary proceedings can be powerful tools for protecting your rights.
If you think that you have a claim against one of your creditors, notify
your bankruptcy attorney.
Experienced and Aggressive Representation
Contact our office online or call (312) 313-1613 for skilled advocacy in adversary proceedings.