When Should A Creditor File A Bankruptcy Adversary Action?
Typically, creditors have little to no recourse when a debtor files for Chapter 7 or Chapter 13 bankruptcy. Unless the debtor has sufficient non-exempt assets to pay all of his creditors, or the debts are secured by homes, cars, or other tangible items, the debts will likely be discharged – i.e., wiped out – leaving creditors with little to no recovery on their debt. In certain instances, however, debtors cannot discharge debts because of how debtors incurred the debt. If The debt was obtained by false pretenses, false representation, or actual fraud; or The debt arose from fraud or...Read More