Blog Posts in February, 2019

What Is an Adversary Proceeding?

An “adversary proceeding” is a civil lawsuit that is filed in relation to a bankruptcy case. A debtor, creditor, or bankruptcy trustee can file an adversarial proceeding to address certain legal issues that can’t be directly resolved by the bankruptcy court. These proceedings have their own case numbers and are treated like any other civil lawsuit. A debtor can file an adversary proceeding to: Ask ...

The Benefits of an Automatic Stay

An automatic stay is an injunction that halts any creditor action once a debtor formally files for bankruptcy. This means that a creditor is legally prohibited from directly contacting, pressuring, and harassing a debtor for payments. The purpose of an automatic stay is to allow the bankruptcy court time to thoroughly review the debtor’s estate. During this time, any creditors involved in the ...