Independence Bankruptcy Attorney

Filing bankruptcy is not an absolute right to have all debts discharged. There are a handful of reasons creditors can challenge discharge of debt. If a creditor can prove fraud or wrongdoing on the part of the debtor, the bankruptcy judge could refuse to grant a discharge as to part or all of the debtor's debt. A knowledgeable bankruptcy attorney can help you understand how denial of discharge actions work within the context of bankruptcy.

The creditor can not sue in state court, only in federal court. Are they challenging the debt in the form of an adversarial proceeding? If so, then they are probably going to ask that there debt not be discharged. You should probably hire an attorney to fight it, but either way, the burden is on the creditor to prove that you have assets that you are not disclosing or that you committed fraud in the use of your credit.

If you filed your bankruptcy case with an attorney, these are questions which your attorney must answer. If you filed your bankruptcy pro se, however, I strongly suggest you retain a bankruptcy attorney.

It may or may not. Either you may have an excellent suit against the lender or you may have a catastrophe. Never file pro se. That is almost always a disaster. At this point expect to spend more top clean up a mess than you would have paid to file properly. If you have a stay and it was violated, your lawyer may get money for you. If you botched the case and did not seek a stay in a case where it is not automatic, you may have a mess that can't be fixed.

What they probably have done is filed an Adversary Proceeding to object to discharge of their debt. If you do not contest it, you will still be liable for this debt on the basis of a default judgment. I do not know of any person who files their own bankruptcy who is able to adequately defend an Adversary Proceeding. You will need an attorney.

If they filed the action in the bankruptcy court you must see a lawyer right away. If they filed in state court they have violated the automatic stay.

It is legal for the creditor to challenge the discharge of their debt. The automatic stay protects you from collection activities, but not from objecting to the discharge of their debts.

You really need to speak to a lawyer. You cannot do this yourself. Non-discharge litigation is a full trial. Whoever told you bankruptcy was the way out of this problem really mis-advised you. Now you need to take steps to insure that your bankruptcy is not used against you.

You are not clear whether your creditor is suing you in State Court or simply has filed a creditors claim or an adversary proceeding in the Bankruptcy Court. In the first case you need to file a Certificate of Commencement of Case (Form B206) in the State Court case, and that will stop it. In the latter case, if it is just a creditors claim that is routine and will not affect your discharge. If it is an adversary proceeding then you need to review the situation in detail with a bankruptcy attorney.

A creditor may not sue you outside of bankruptcy court. Every creditor has the right to file an adversary proceeding and contest the discharge of their debt or challenge your right to file at all. It amounts to a lawsuit against you inside of the bankruptcy and would be tried by the Bankruptcy Judge. The automatic stay protects you from action outside of bankruptcy court but does not have any effect upon their right to fight about whether or not their debt will be discharged. If you are being sued, you need to notify the lawyer on the other side that you have filed bankruptcy. You should file something in the court where you are being sued that gives them notice of your filing with the Case No., date of filing and what chapter you filed. If you have a lawyer, they will know what to do. If you are representing yourself, now is a good time to rethink that decision.

Assuming creditor was properly listed, he is in violation of the automatic stay. Tell your attorney.

Creditor cannot sue you in state court without the OK of the bankruptcy court. However, you can be sued in bankruptcy court to have the bankruptcy court determine that the debt is not dischargeable in bankruptcy because of fraud or other reasons. If that happens you need a lawyer immediately. A lawsuit in bankruptcy court is called an adversary proceeding. The fact that you might not have a lawyer now may increase the chances of an adversary proceeding in a bankruptcy case.

Time to file your bankruptcy.

The automatic stay should protect you against a lawsuit.

Yes. Its called an adversary proceeding and acts much like a regular case, however, they are often an effort in futility by creditor.