Financial hardships can affect anyone, transforming manageable debts into overwhelming burdens. Fortunately, federal bankruptcy laws provide an avenue for relief. However, this legal process is often very complex and requires the attention of an experienced attorney.
If you’re in Florida and facing bankruptcy, the skilled legal team at Loan Lawyers is here to help. We are ready to thoroughly review your case, navigate the law, and help you chart a course toward financial security. Reach out to us today to schedule your confidential, no-obligation consultation.
How are Bankruptcy Filings Different from Other Cases
Bankruptcy is a unique and specialized area of the law. Unlike most legal cases, most bankruptcy filings don’t involve a direct dispute between two parties (i.e., they are not typically styled as “Plaintiff vs. Defendant”). However, direct disputes are not unheard of in bankruptcy litigation. These disputes typically emerge from objections filed by creditors or other stakeholders.
Bankruptcy litigation can seem intimidating and leave you wondering what steps to take next. Remember that you do not need to face it alone. Our experienced legal team is standing by to make sure you know your full rights and options going forward.
Who Can Dispute My Bankruptcy Filings?
Broadly speaking, there are three kinds of scenarios that may give rise to a bankruptcy dispute. They are as follows:
- Debtor-Creditor Litigation – This can involve many issues, including disputes over the dischargeability of certain debts, general eligibility for discharge, and disagreements over creditors’ claims. Each of these areas may introduce unique complexities to your case. Our attorneys can craft a strategic approach to handle any disputes that may arise.
- Debtor-Trustee Litigation – Disputes may also arise between debtors and trustees (individuals appointed to handle an indebted estate during bankruptcy proceedings). The disputes usually involve the general dischargeability of certain debt obligations and exemptions. They often hinge on legal technicalities and require the attention of a skilled attorney to make sure your rights are protected.
- Trustee-Creditor Litigation – These disputes often relate to a trustee’s power to seize assets, reclaim preferential payments, or a creditor’s right to payment on a proof of claim. Again, these disputes can also be quite complex. It is best to have an attorney handle them on your behalf.
What is the Difference Between “Discharge” and “Dischargeability”?
In a bankruptcy proceeding, it is important to understand the basic terminology, including the distinction between “discharge” and “dischargeability.” The term “discharge” refers to the release of a debtor’s obligation to repay specific debts they incurred before filing for bankruptcy. Once a bankruptcy court discharges a debt, the debtor is no longer legally obligated to pay the remaining balance.
By contrast, “dischargeability” describes whether a particular debt qualifies for discharge in a bankruptcy case. Certain types of unsecured debt, such as medical bills and credit card debt, are typically dischargeable in bankruptcy. However, other debts, such as recent tax arrears, student loan debts, child support payments, and debts accrued through fraudulent or criminal activities, are generally non-dischargeable.
Core vs. Non-Core Proceedings
In a Florida bankruptcy lawsuit, it is also important to differentiate between “core” and “non-core” issues:
- Core Proceedings – These deal with issues that are unique to your bankruptcy case and directly impact the case’s outcome. They arise from federal bankruptcy laws and usually fall within the purview of a federal bankruptcy judge.
- Non-Core Proceedings – These deal with issues that, though related to your bankruptcy filing, do not directly pertain to the bankruptcy itself. They can still influence the final outcome of a case, but they may involve matters beyond a federal bankruptcy judge’s jurisdictional power.
The difference between these two areas can be somewhat vague. A skilled attorney can help sort them out within the context of your case.
Adversary Proceedings vs. Contested Matters
Another important and related distinction in bankruptcy litigation is between “adversary proceedings” and “contested matters.” Understanding the difference can help manage expectations and appropriately shape your litigation strategy.
- Adversary Proceedings – An adversary proceeding is a separate legal dispute related to a bankruptcy case. This could be, for instance, a complaint challenging the dischargeability of a debt. An adversary proceeding is a standalone lawsuit adjacent to the broader bankruptcy case. They typically follow the formal procedures of a run-of-the-mill civil lawsuit.
- Contested Matters – By contrast, a contested matter addresses specific issues within a bankruptcy case. This could be an objection to a claim, a motion to lift an automatic stay, or a motion to use cash collateral. Though contested matters may seem less formal than adversary proceedings, they can still significantly impact the outcome of your bankruptcy.
Will All of My Legal Issues Be Resolved in Bankruptcy Court?
Bankruptcy courts handle a wide array of issues. However, certain matters typically fall outside their jurisdiction (i.e., their power to review and resolve legal matters and disputes). These include divorce or child custody issues, probate proceedings, and personal injury cases. If you’re dealing with these situations alongside bankruptcy, it’s important to consult with a legal team that can handle matters both inside and outside the scope of the Bankruptcy Code.
How a Florida Bankruptcy Litigation Lawyer Can Help
Working with an experienced bankruptcy litigation lawyer can make a huge difference in the outcome of your case. Your attorney will act as your closest ally throughout the bankruptcy process, representing you in court, advocating for your interests, and helping you navigate the complex landscape of bankruptcy law. Among other things, the legal team at Loan Lawyers can:
- Gather and analyze evidence.
- Prepare your case for court.
- Represent you in adversary proceedings (i.e., separate lawsuits adjacent to your broader bankruptcy case).
- Resolve complex issues, such as asset valuation and the order of priority of creditors’ claims.
- Negotiate settlements with other parties, potentially reducing the amount of money you owe and facilitating a smoother path to financial stability.
Secure Your Financial Future with Loan Lawyers
Dealing with bankruptcy can be incredibly frustrating. But you do not have to face it alone. The team of foreclosure defense, debt defense, and bankruptcy attorneys at Loan Lawyers is here to help. We will look after your interests every step of the way and help you secure your financial future. Contact us today for a free, confidential consultation.
