When Should A Creditor File A Bankruptcy Adversary Action?
Posted Nov 30, 2017
By the Lawyers at Beresford Booth
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