Florida Bankruptcy Litigation

Litigation often arises in Federal Bankruptcy Cases. We handle such matters in the Southern District of Florida. Trustees and debtors-in-possession (Chapter 11) may bring lawsuits known as adversary complaints against creditors for preference claims and fraudulent transfers. Debtors may file adversary complaints against creditors or third parties. Creditors may bring adversary claims against a debtor seeking to avoid discharge. A debtor may also file an adversary complaint seeking a determination that certain tax obligations are dischargeable.

Adversary Proceedings

Many bankruptcy attorneys in South Florida handle only basic Chapter 7 and Chapter 13 proceedings. If a creditor files an adversary proceeding to challenge the debtor’s right to receive a discharge or the Trustee challenges a claim of exemption the client has to find new counsel. We handle all cases from start to finish including all adversary proceedings and contested matters.

We also file adversary proceedings for clients. An adversary proceeding can be used to challenge a creditors lien on real or personal property, to recover money garnished within 90 days of filing bankruptcy or to bring a claim against the creditor. In a Chapter 11 case we filed for a South Florida mortgage company we were able to recover over $400,000.00 that was being held by a bank as a result of a State Court garnishment. See the Advantage One Mortgage Company opinion.

Violation of the Automatic Stay

We also handle contempt claims in bankruptcy for violation of the automatic stay. In a recent case in the Southern District of Florida an insurance company levied on the personal property of one of our clients after we obtained a discharge in bankruptcy of the debt. The insurance company showed up at our client’s home along with two Federal Marshals, a moving truck and movers and two appraisers. The company had been advised that the client had a special needs daughter particularly susceptible to emotional damage. It took over one hour of phone calls to stop the levy. At trial the Bankruptcy Judge found that the insurance company levied on our client with “the intent to cause as much psychological damage as possible.” The case settled for $275,000.00.

Our firm handles all such matters and represents debtors and creditors. We limit our practice to the Southern District of Florida.

This article is not intended as a substitute for competent legal or accounting representation, but merely as a guide to help you decide whether you need the services of a licensed attorney or CPA.