Adversary Action

[inhocknow]

Hello folks, here is another question for you all.

If a credtor takes adversary action, what does this mean? Who decides the fate of this action? The trustee or the judge? What does this do to my bankruptcy? Do they often settle less then the entire amount? Do they offer settlements for less then the whole amount?

How much extra will a lawyer charge to represent you during this type of action generally?

Thank you for all of your help.

[HHM]

Instead of worrying about the mechanics of an Adversary, you are better off determining if you are really at risk.

To answer the easier questions regarding creditor objections.

1. An adversary action is a mini-trial within bankruptcy court. Thus, a judge decides the case. The trustee is rarely, if ever, involved.
2. Most of the time, the creditor will seek a settlement for less than the full amount and a payment plan. (unless the debt in questions falls within the presumption period).
3. Attorney's fees vary too much to give you a generalization, but an adversary will usually "at least" double the cost of your BK.
4. A creditor objection does not effect the rest of you BK. You will still receive your discharge, etc.

[SinkingFast]

Our paralegal has worked for our attny for 10-12 years.

She told us, our attny charges $2K, cash, up front, just to start representing a client in an Adversarial proceeding. She didn't say how much one would cost, total.

The paralegal did say in her time with our attny, he's only pursued 3 Adversarials that she could remember. And all of them were VERY messy.

So rather than worry about what happens during one or getting thru one, do as HHM suggests. Determine if you're at risk. Delay filing if need be to put more time between charges and your BK.