Adversary Proceedings Explained
Adversary Proceedings are lawsuits within a bankruptcy case. These can be suits to determine whether a debt is dischargeable, allegations of fraud or intentional misrepresentation, over Domestic Support Obligations, preference payment actions (preferring one creditor over another), and Trustee’s actions to recover gifts or payments to relatives.
Many attorneys and law firms do not handle Adversary Proceedings. They take a lot of time and bankruptcy “mills” do not want to spend the time required to defend or file these proceedings. Zimmermann Law Offices has experience both defending, as well as filing Adversary Proceedings and regularly takes on Adversary Proceeding cases.
Zimmermann Law Offices also helps creditors defend against Preference Payment Actions, where a debtor or Trustee tries to get money back a creditor received as compensation for a debt. As a creditor, it is important to contact an attorney soon after receiving notice of the bankruptcy filing to determine your exposure to a preference action. This can allow you time to prepare and best defend any preference payment action brought against you for receiving payment on a debt from a bankrupt debtor.