Challenging Trustee And Creditor Lawsuits
In a bankruptcy, creditors have the right to file a lawsuit asking that their particular debt not be discharged or that the debtor’s bankruptcy discharge be denied. The bankruptcy trustee also has the right to sue the debtor if the trustee suspects fraud in the bankruptcy petition. Both of these are known as adversary proceedings.
If you are sued, do not panic. At Levitt & Slafkes, P.C., attorney Bruce Levitt is a former bankruptcy trustee and has vast experience with adversary proceedings in courthouses throughout New Jersey.
Common Lawsuits Filed During Bankruptcy
A creditor can file two forms of complaints:
- Dischargeability — This is when a creditor wants to prevent the debt you owe from being discharged.
- Denial of discharge — This is when a creditor wants to prevent you from receiving any discharge of debt.
A bankruptcy trustee can file a lawsuit against you seeking denial of the discharge altogether, if he or she believes your petition is fraudulent.
A bankruptcy trustee can also sue family members and other creditors to get back money you may have paid before you filed for bankruptcy. The most common trustee lawsuits are:
- Preferences — This occurs when you have paid a creditor shortly before filing bankruptcy; the money can be recovered and spread among all of your creditors.
- Fraudulent conveyances — This occurs when you pay money to another person or if you sell, give or transfer property to another person to protect the asset.
Our attorneys will review the complaint and determine how to resolve the issue. In some situations, it is simply a misunderstanding and can be fixed easily. In other cases, it may require litigation.
We Have Extensive Experience With Adversary Proceedings
At Levitt & Slafkes, P.C., we help businesses and individuals who are facing serious financial difficulties. As bankruptcy attorneys, we know that creditors sometimes object to not being paid. Trustees may see fraudulent activity where none really exists. We have a thorough knowledge of bankruptcy laws and will use that knowledge to defend you if a creditor or trustee files a lawsuit against you.
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We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.