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Finding Solutions When A Debtor Files For Bankruptcy

When one of your debtors files for bankruptcy, but you have doubts about the legitimacy of their case, you have options. You may be able to file an adversary proceeding, which is a separate lawsuit within a bankruptcy. You can challenge their ability to discharge your claim. Delev & Associates, LLC, has experience representing creditors in bankruptcy court. Our goal is to increase the amount of your recovery while decreasing your cost of recovery. We will pursue the money you deserve when a business files bankruptcy.

Grounds To Object To Discharge

In order to bring an adversary proceeding, often you must allege the debtor committed some sort of fraud related to the bankruptcy case. You may allege the debtor made a fraudulent transfer with the bankruptcy coming, but you may also argue that the debtor never intended to pay the debt — purposefully running up debt while planning to file bankruptcy. Two common objections include:

  • A 523 objection — Here, the creditor is claiming that the debtor obtained the debt due to false pretenses, a false representation or actual fraud. This may include the running up of debt, but also includes other situations such as false representations in a loan application.
  • A 727 objection — This challenges dischargeability of debt on a slightly larger scale. Rather than targeting a single debt like a 523 objection, this objection challenges the legitimacy of the bankruptcy itself. Acts may include fraudulent transfers before or during bankruptcy or hiding, destroying or concealing property from the bankruptcy court.

At Delev & Associates, we understand the bankruptcy system, and we understand how to fight for your rights as a creditor within this process. We will review your claim meticulously to find every option available. If we cannot find grounds for an adversary proceeding, we will work with you to help you find other options, preserve future claims and improve your recovery rate. We want to see your business succeed.

Discuss Your Concerns With Us

Contact us to schedule a free initial consultation to discuss your questions and concerns about bankruptcy litigation. Call our Cincinnati office at 513-277-0816 or toll-free at 800-593-8453. You may also contact us online.

We are a collections law firm facilitating both commercial and consumer collections. We do not help people file for bankruptcy relief under the Bankruptcy Code.