Most of the time, the sole purpose of filing the bankruptcy case is to wipe out the charges of debts that you cannot fulfill right now owing to extreme financial shortage. The common debts that you can get rid of by declaring bankruptcy include medical bills, credit card bills, and personal loans. But don’t think that your lawyer will start filing bankruptcy, and the creditors will accept the discharge of debt. There is a full right of the creditor to object against the discharge of some particular debt. An adversary proceeding is, thus, a matter of concern against your bankruptcy declaration.
Types of objections
If the creditor believes that you are intentionally declaring the bankruptcy after doing fraudulent activities, then the creditor has the right to file the adversary proceeding case. The creditor can bring a claim of compensating the damages and costs arising from your spiteful and intentional conduct. If the claim is completely baseless, your lawyer has to face many difficulties in trying to get the exemptions under Chapter 13 or Chapter 7. For instance, according to the bankruptcy law huntsville, you have to pay for the apartment’s repair if the creditor claims that you are moving out just because you have caused the damage to the building.
Forging is offensive
The creditor will try to connect the forgery with your filing of the case instead of claiming that it happened before filing bankruptcy. The impact of connecting wrongful deeds with the bankruptcy declaration is deeper, and your lawyer will have to plan a lot to negate the charges. The common claims include perjury, where the creditor will demand that you are providing wrong information to the court regarding the financial condition. There can also be an allegation of transferring the ownership of property suddenly to someone else for saving the asset. Even the destruction of assets or papers can also be a part of the claim.