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Irvine Bankruptcy Lawyer / Bankruptcy Litigation

Navigating through bankruptcy is more than just completing paperwork and meeting with the bankruptcy trustee; sometimes it involves defending your rights in court. At The Law Office of Charles A. May, we are your advocates throughout the bankruptcy process, including bankruptcy litigation when it arises. We aim to make this often-intimidating process as simple and stress-free as possible. For help with adversary proceedings and contested matters in your Chapter 7 or Chapter 13 bankruptcy, call The Law Office of Charles A. May for advice and representation from a skilled and dedicated lawyer.

What Is Bankruptcy Litigation?

Bankruptcy litigation occurs when there is a dispute or conflict during the bankruptcy process that requires court intervention. These issues may arise between the debtor (the person filing for bankruptcy) and creditors, or they could involve a bankruptcy trustee. At our law firm, we offer steadfast representation throughout this complex journey. From interpreting laws to collecting evidence, we are committed to ensuring the best possible outcomes for our clients.

Bankruptcy litigation commonly falls into two broad categories: adversary proceedings and contested matters.

Adversary Proceedings

An Adversary Proceeding is essentially a lawsuit within a bankruptcy case. This separate legal action is filed within the bankruptcy court and can be initiated by the debtor, a creditor, or even the bankruptcy trustee. Common types of adversary proceedings include:

  1. Fraudulent Transfers: If there is suspicion that a debtor has transferred assets to avoid paying a debt, a creditor may file an adversary proceeding.
  2. Dischargeability: Creditors might question whether a particular debt should be discharged. If deemed non-dischargeable, the debtor remains responsible for its repayment even after bankruptcy.
  3. Preference Claims: These are typically filed by the bankruptcy trustee alleging that a creditor received preferential treatment from the debtor within 90 days to a year before filing for bankruptcy. All creditors in the same class have an equal right to the bankruptcy estate, so the trustee can initiate litigation to reverse a preferential transfer.

Contested Matters

Unlike Adversary Proceedings, Contested Matters are less formal disputes that arise during a bankruptcy case. These are usually resolved through a simple court motion, rather than a full-blown lawsuit. Common types of contested matters include:

  1. Relief from Automatic Stay: A creditor might request the court to lift the automatic stay, allowing them to proceed with foreclosure or repossession.
  2. Objections to Plan Confirmation: In a Chapter 13 bankruptcy, creditors or the trustee may object to the debtor’s repayment plan.
  3. Objections to Exemptions: If a creditor or trustee doesn’t agree with how the debtor has listed their exempt assets, they may file an objection.

Effective Advocacy During Bankruptcy Litigation

At The Law Office of Charles A. May, we are dedicated to making your bankruptcy litigation process as smooth as possible. Reach out to us for personalized, compassionate, and efficient legal representation in Irvine. We are here to stand by you every step of the way. For help in all of Southern California, call our office for a free consultation or immediate assistance.

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