Bolinske Law | Minnesota Bankruptcy Adversary Prosecution / Defense
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Minnesota Bankruptcy Adversary Prosecution / Defense

A bankruptcy adversary proceeding is a lawsuit in a bankruptcy case. These cases are normally filed by a creditor of the person who filed for bankruptcy protection. Our office handles adversary proceedings and understands both the debtor and creditor side of adversary litigation. The most common adversary proceeding comes about from debtors who file for bankruptcy protection, but have taken large cash advances, balance transfers, or convenience checks before filing for bankruptcy protection.

 

Creditors do not like debtors taking large sums of cash and then filing bankruptcy, and this is presumed abusive if it occurs within 90 days of the bankruptcy filing. If it is beyond this 90 day period the creditor needs to prove an abuse by the debtor in order to keep that debt from being discharged in the bankruptcy. The other common reason for a bankruptcy adversary proceeding is a debtor obtaining a loan from a financial institution but using false information. They bank suing will then attempt to show that they would not have extended credit, but for the false information supplied by the debtor. The debtor will then be required to show that the information provided on the loan application was correct.

 

Many of these adversary complaints are resolved by settlement, and our office has experience dealing with all facets of adversary litigation. If you are faced with a lawsuit in bankruptcy court contact our office to see how we can help you.