Unlike Chapter 13 which takes many years to be complete, Chapter 7 is known for providing fast financial relief to consumers in over their heads in debt. Unless things get delayed, most filers have a quick filing process within months from filing to final discharge. It's important for filers to understand the circumstances under which things can get bogged down, though, and how to get back on track again. While the below won't happen in all cases, filers should not panic when they do. Read on to find out more.
Two Types of Adversarial Actions
Bankruptcy involves more parties than many filers realize. There is the federal bankruptcy court, the filer, the creditors, and the bankruptcy trustee. Any one of those parties may need to bring a temporary halt to the proceedings for a time. Once you file, your case is assigned a trustee who is the administrator of your case. When any party files a motion in connection with your Chapter 7 bankruptcy case, it's known as an adversarial action. What filers should keep in mind is that your bankruptcy lawyer is well-versed in dealing with all types of adversarial actions and will be by your side every step of the way no matter what happens. With that in mind, take a look at the two main types of adversarial actions from the trustee or from your creditors.
The Trustee Makes an Objection
The trustee is charged with ensuring that your bankruptcy package is complete and legal after it's filed. In some cases, the trustee has to hold up your case and get more information. For example, they may need to see some documentation supporting your income. A filer's personal property is an important aspect of a filing and some trustees perform an in-person inspection on a filer's property. Also, the trustee has the right to question recent property transfers prior to the bankruptcy.
A Creditor Makes an Objection
When creditors object, it's usually specific to a certain charge. There are rules about how much can be charged and about cash advances on credit cards. Filers who used their cards in excess of those rules may need to show that the purchases were necessary and not frivolous. Also, creditors can object to their inclusion in the bankruptcy based on the filer providing incorrect income information at the time of the application.
If you receive a notice of a pending hearing or motion in regard to your bankruptcy then your attorney did also. Some adverse notices are minor and some are more worrisome but most consumers are able to get things back on track after things are resolved. Speak to a bankruptcy law firm, like Havner Law Firm, to learn more.Share