Typical Grounds to File Adversary Proceedings (Lawsuits in the Bankruptcy Court)

ADVERSARY PROCEEDINGS – YES, YOU CAN FILE A LAWSUIT IN THE BANKRUPTCY COURT

The following are some of the typical types of cases that may get filed in a Bankruptcy Adversary Proceeding:

(1)   “Lien Strip” of  unsecured junior liens

(2)    Rescind your Loan under Truth in Lending Law (TILA).  Ex. you rescind your loan prior to filing bankruptcy, and then list property as unsecured on your schedules and then filing the adversary proceeding, usually while selling the house and figuring out a new payoff.

(3)   Suing for Violation of the Automatic stay (creditors taking illegal actions in violation of the automatic bankruptcy stay)

(4)   Fair Credit reporting Act (FCRA) credit reporting violations

(5)   Violations of Fair Debt Collections Practices Act (FDCPA)

(6)   Violations of State Unfair and Deceptive Business Practices Statute (Like pre-filing mortgage rescue scams)

(7)   Suing for Tort of Harassment of Debtor  (See in re Sipe v. Canseco 2001 WL 35672616)

(8)   Pursuing violations stemming from filing false and fraudulent proof of claim (ex. creditor has no proof of secured status yet asserts they are a secured creditor using false affidavits).  Note: this could be a systematic problem raising potential for class action.

(9)   Filing lawsuit for violation of RESPA (ex. QWR violations seeking attorney fees and actual damages, or damages for unauthorized fees charged)

(10) File lawsuit for creditor’s failure to release a lien as required

(11)  Lawsuit for violation of Federal Gramm Leach Bliley Privacy Act (GLB), or other state privacy laws, including identity theft law violations under state laws.

(12) Violations of discharge injunction.  Ex. reopening the bankruptcy to file for violation of discharge injunction.  Consult your local rules, there may be no charge to reopen and filing fees may be waived under these circumstances.

(13) Lawsuit challenging the extent, validity, or priority of alleged liens (proving your “creditor” is not a legitimate creditor, or is not secured creditor).

These are just a few grounds to consider when filing bankruptcy.  In many cases, you may have grounds to assert legal challenges that could either lead to settlement, or to an award of actual damages, costs, attorney fees, and other damages.

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The Law Offices of Steven C. Vondran, P.C. is a foreclosure defense and bankruptcy lawfirm.  We help people file for bankruptcy protection under the bankruptcy code.  We can be reached at (877) 276-5084.  Information may also be obtained at http://www.UltimateBK.com and http://www.ForeclosureDefenseResourceCenter.com