Legal Question in Bankruptcy in California
Lost adversary proceeding
I filed bankruptcy it was discharged, reopened and an adversary proceeding was filed on what a creditor felt was an undischargeable debt. If the creditor loses his claim in bankruptcy court, can he still come after you in civil court? Or if they win and the debt is not discharged what court does the that then play out in civil or bankruptcy?
3 Answers from Attorneys
Re: Lost adversary proceeding
If he loses, it's over and the debt is uncollectible. If he wins, that means the BK court has determined that the debt is valid and excepted from discharge.
Re: Lost adversary proceeding
The adversary action was the creditor's allegation that the debt to him should not be discharged. If he loses, the debt remains discharged and you have no further obligation. If he wins, it will be as if you had never filed BK with respect to that debt. He can proceed against you in civil court (if he does not have a judgment already) and can ultimately garnish wages and/or attach bank accounts. You should attempt to settle the adversary action if you are not likely to win.
Re: Lost adversary proceeding
If the creditor wins the adversary proceeding he can proceed against you in civil court. But have no fear, you may then be able to file a chapter 13 to pay back the creditor over the next 5 years.
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