In many cases creditors and/or bankruptcy trustees file challenges to the bankruptcy. These challenges can have a very significant impact on the success (or failure) of your bankruptcy.
For example, creditors and the trustee may challenge your right to receive a Chapter 7 Discharge. This challenge is initiated by the filing of a lawsuit (called an adversary case) within the bankruptcy proceeding, There are many grounds upon which to challenge discharge, including the pre-bankruptcy transfer of property with the intent to defraud creditors. There is a presumption in favor of discharge, however, and the burden of proof rests upon the creditor or trustee.
Rather than challenging the entire discharge, a creditor may challenge the cancellation of its debt. This challenge is initiated in a South Florida bankruptcy case by the filing of an adversary case, which must be defended by the bankrupt. Many different types of debts can be excepted from discharge. One example is a debt that was incurred via false pretenses, false representation, or actual fraud. Exceptions to discharge are strictly construed, as the presumption is in favor of the bankruptcy debtor.
Request for Dismissal of Bankruptcy
In addition to discharge challenges, we are also called upon to defend against requests for dismissal of bankruptcy cases. We defend motions to dismiss based upon the means test, which may preclude high earners from filing Chapter 7. We also defend dismissal requests based upon bad faith, and totality of the circumstances.
Bankruptcy litigation is complicated and fast paced, and not all South Florida bankruptcy attorneys handle this litigation. Attorney Todd S. Frankenthal has significant experience and success handling these cases, and stands ready to help you!