Island Lake Bankruptcy Attorney Describes The Adversarial Complaint

As described by an Island Lake bankruptcy attorney, an adversarial complaint is a complaint in the bankruptcy case whereby a creditor is trying to hold a debt non-dischargeable typically.  Where we see an adversarial complaint mostly is when someone does something in contemplation of bankruptcy that is tantamount to fraud.  The best case for this is when someone uses credit cards just prior to filing the bankruptcy.  These are known as credit card run-up cases and someone is basically exhausting whatever credit line they have on that credit card knowing they are going to be filing a bankruptcy. 

The credit card company can bring an adversarial complaint which is a specialized lawsuit within the bankruptcy case which right to determine whether or not you should be allowed to eliminate that particular debt.  If the debtor is successful in defending the adversarial complaint, then the debt is eliminated.  If the creditor is successful, then the amount in the adversarial complaint that his complaint on, is going to be held due and owing and non-dischargeable going forward.  What this typically means is the debtor is going to have to all a certain amount to a particular creditor even after their bankruptcy case completes. 

Adversarial complaints are separate lawsuits within the Bankruptcy Court and they are much more difficult and much more time-consuming than the underlying bankruptcy filing.  Most attorneys will handle your adversarial complaint for an additional fee, typically an hourly rate with a down payment or retainer. 

The best thing to do to avoid adversarial complaints is to tell your attorney everything that you did prior to filing an answer your attorney’s questions honestly when he asks you whether or not you have used your credit card recently and whether or not you have taken out any major cash advances recently.  You do not want to be defending adversarial complaints because they are expensive and they are difficult.  In the overwhelming majority of Chapter 7 bankruptcy cases, there are no adversarial complaints and the case is closed with a discharge in the ordinary course.