Business Bankruptcy | Litigation
Types of Bankruptcy Litigation
A lawsuit that is filed within a bankruptcy is called an “adversary proceeding” or AP. There are several types of adversary proceedings including:
Creditor APs– The most common type of AP, these involve creditors suing to prevent a debtor from receiving discharge for a debt. Bankruptcy code allows for some exceptions to discharge and creditors may sue to enforce these exceptions. For example, a creditor may sue to lift an automatic stay so that a foreclosure can go through.
Trustee APs – Suits filed by bankruptcy trustees are also common. These often involve suits against debtors for misconduct or fraud. Trustees may also sue creditors on some occasions.
Debtor APs – A debtor may sue creditors for violations of protections afforded by bankruptcy such as a violation of the automatic stay.
Not all bankruptcy attorneys are experienced in handling bankruptcy litigation, which can at times be very complex. Consequently, many debtors are forced to seek outside counsel if an adversary proceeding arises. At Springer Brown, our attorneys are skilled in bankruptcy litigation of all kinds for both consumer bankruptcy and business bankruptcy. You can rest assured that no matter what issues may surface in your bankruptcy case, we will be with you each step of the way.