Understanding the Ins & Outs of Contested Bankruptcy Filings
One of the common questions we receive from our clients concerns bankruptcy litigation. What exactly is it, when does it occur, and why does it happen? Further, it the case is litigated, what does that mean and what happens next? Continue reading for an overview on bankruptcy litigation cases.
After filing a bankruptcy case, a number of parties may have an objection. These parties include creditors and lenders, other agencies, and also the trustee involved in handling the bankruptcy case.
The good news is that bankruptcy litigation does not always happen. Actually, it usually does not, and many aspects of a bankruptcy filing leave no room for complaint or objection from creditors and lenders, which is good news for the person who’s filing the bankruptcy.
However, there’s a range of potential snags which may cause one of the parties to take action. They may file a motion for the turnover of liquid assets for distribution to creditors, or file to cancel out the automatic stay. As the case nears its resolution, they may object to the discharge of a debt, for chapter 7 cases, or the payment plan of a debt or debts, for chapter 13 bankruptcy cases.
There are of course many other specific instances for which bankruptcy litigation can occur. Either way, it’s essential that you work with an experienced professional who can guide you through the process.
Call Goren & Tucci at 301.977.4300 for more information and to schedule a free consultation to discuss your bankruptcy case in Maryland.