When a serious dispute arises in a bankruptcy case, an adversary proceeding may be started. This is a separate lawsuit in bankruptcy court that may be initiated by creditors, the debtor or the bankruptcy trustee to accomplish an objective that cannot be achieved by filing a motion. The underlying bankruptcy case will not close until the adversary proceeding concludes by settlement or by court order.
There are multiple issues for which an adversary proceeding might be brought, such as the following:
Contested matters often arise during the course of a bankruptcy proceeding that do not require filing a separate action. For instance, if a debtor in a Chapter 13 bankruptcy seeks to convert second mortgages on their home into unsecured debts, an adversary proceeding might not be necessary unless the affected creditors object. The judge in the main case has the authority to convert a contested matter into an adversary proceeding if deemed appropriate.
Bankruptcy can seem overwhelming but it need not be so if you have an experienced attorney on your side who can guide you through the process. Jeff Field & Associates helps clients throughout the Atlanta metropolitan area in all aspects of bankruptcy proceedings. We have offices in Athens, Douglasville, Gainesville, Lawrenceville, Marietta and Scottdale. To schedule an appointment, call 404-381-1278 or contact us online.
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