teens with legal issues

In most cases, a chapter 7 bankruptcy is a smooth and easy process that is over in a matter of a few months. Unless you run into problems, the average chapter 7 filing takes approximately 4-6 months from filing to final discharge. Unfortunately, problems can occur during the process that can lengthen that time estimate considerably. Read on to find out how adversarial actions during bankruptcy can cause delays.

What Are Adversarial Actions?

There are several reasons that might cause your bankruptcy case to be sidelined by adversarial actions. Any time one of the below issues rears up and an adversarial action is initiated, a new and separate case is filed with the bankruptcy courts. In most cases, you will have your bankruptcy case and any number of adversarial cases to deal with and it's helpful to separate each case and deal with it on its own merits. However, you should realize that adversarial action cases must be resolved before your bankruptcy can be discharged and become final.

Understanding Bankruptcy Parties

The legal term used to describe players in a bankruptcy case is known as a party. Here are a few examples of parties in most bankruptcy cases:

• You and your joint filer (if pertinent).
• The bankruptcy trustee.
• Each and every creditor listed in your bankruptcy

Common Adversarial Actions

1. Creditors object to the discharge of a given debt – In this case, one of your creditors is disputing your ability to have a debt discharged. Some common reasons for the objection include an allegation of credit card fraud. While this certainly sounds scary, it just means that you may have been less than truthful when you applied for your card. You might have exaggerated your income, for example. You are not likely to face any charges for this type of action, but you may not be able to have that debt included in your bankruptcy if it can be proven.

Another very common issue that gives rise to an objection is the misuse of credit cards prior to a bankruptcy filing. You cannot use your credit cards for certain items using over a certain amount of credit in the months leading up to your filing.

2. Trustees object to a transfer – One of the main functions of a trustee is to seize a filer's property, sell it, and provide the funds to your creditors. With that in mind, the trustee looks back at the period of time leading up to your bankruptcy to ensure that you did not sell or give away property or money. Along those same lines, the trustee endeavors to keep things fair when a creditor is paid. The appearance of favoring one creditor over another might lead to an adversarial action and a "take-back" of that payment, transfer or sale.

Adversarial actions don't have to affect your ability to gain debt relief negatively. Speak to an attorney, such as H. Charles Woerner, Jr. PA, to learn more.