Bankruptcy Litigation
for Creditors & Debtors

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Bankruptcy litigation is complex for both debtors and creditors. Without the right bankruptcy litigation lawyer in the courtroom, you may lose your rights or end with an unfavorable deal with the opposing party. The Law Offices of Nicholas Gebelt are well-equipped and experienced in bankruptcy litigation. We will fight for you and protect your rights.

Creditors’ Rights

If a debtor files for bankruptcy protection, its creditors may conclude that they have no further recourse to recover the money they are owed. While this is true in many bankruptcy cases, in some cases creditors do have remedies. Here are some:

• In a personal bankruptcy a creditor has the option of challenging the discharge of the debt owed to it, or challenging the debtor’s entire discharge.
• A creditor may wish to lift the automatic stay to repossess personal property, foreclose on real property, or return to a nonbankruptcy court to continue an action that was pending on the petition date.
• If the case is one under Chapter 7, and the debtor has assets that the Chapter 7 Trustee will liquidate for the benefit of creditors, the creditor must file a proof of claim to get paid.
• If the case is under Chapter 13, then the creditor must file a proof of claim to get paid through the plan.
• If the case is under Chapter 11, and the creditor disagrees with the way the debtor scheduled its claim, it must file a proof of claim.
• The creditor can seek to convert a Chapter 11 or Chapter 13 case to one under Chapter 7.

Debtors’ Rights

Debtors sometimes have to deal with litigation in bankruptcy. Here are some examples:

• If a creditor has initiated a nondischargeability action, the debtor must mount a defense. Otherwise, the debt to the suing creditor will not be discharged; and the debtor may even be ineligible for a discharge of any kind.
• If a creditor has filed an invalid or inflated proof of claim, the debtor may wish to challenge it using a claim objection.
• If the debtor is in a Chapter 11 case, the debtor may need to file actions to avoid fraudulent and preferential transfers.
• With the right facts, the debtor may need to initiate an action to recover garnished wages.
• If a creditor has violated the automatic stay, the debtor may wish to file an action to recover damages.

While you can represent yourself in bankruptcy litigation, you may end up embodying the old adage: “The man who is his own lawyer has a fool for his client.” It is much better to have a seasoned bankruptcy litigator represent you.

• How Can Bankruptcy Disputes Be Resolved Without Having To Go Into Litigation?
• When Might A Creditor File A Lawsuit Against The Debtor? Does This Mean The Case Will Go To Trial?
• An Overview of Bankruptcy Litigation for Debtors
• An Overview of Bankruptcy Litigation for Creditors
• What Exactly Is Bankruptcy Litigation?
• When Do Bankruptcy Cases End Up In Litigation?

What To Do Now

Whether you are a debtor or a creditor, if you need representation in bankruptcy litigation call our office at (562) 777-9159, or fill out our client contact form on our website. During your free 20-minute phone strategy session, we will discuss your options, and the best way to protect your rights. Whether you are a creditor or a debtor, it is vital to act quickly and protect your interests throughout the bankruptcy proceedings.