Two Simultaneous Adversary Proceedings For The Same case?

[Atlanta7]

What happens if two simultaneous Adversary Proceedings are filed to deny the discharge for the same chapter-7 case? One is filed by UST and another by a creditor.

[justbroke]

As Des wrote, it's better if the UST is doing the general denial. They have more resources and it's free for all the creditors. From a debtor's perspective, it doesn't matter. From a creditor's perspective, they have to think about spending $$$$$ for nothing. Each is a separate complaint so they would each travel separately. Worse, if the UST loses, the creditor's case may also be unable to prove their case and wasted $$$$$ on a noncollectable debt. This is why many creditors don't file A/Ps for a case under a certain dollar amount.

If you are a creditor, you should ask these questions of your attorney that filed the adversary proceeding. You should trust your attorney to give you the best strategy and chances. Your attorney would have many more details, has practiced in that district, and has a general idea about the viability of a complaint to deny the general discharge.

(Also, if you're a creditor, does your contract or agreement include a provision to recovery all attorney fees related to collection? This is why you need a good local attorney that you can retain for an A/P against a debtor. They can counsel you based on the detailed information about the claim and the best way to recover or save money.)

[Atlanta7]

Thank you just broke. The contact did have provision for the recovery all attorney fees. The debt is in six figures.

[justbroke]

If you want to spend the money, at least do what Des wrote. Hire an attorney. Have the attorney preserve the time to extend the period to object to discharge. If that time has passed, then you are at the mercy of the UST. If the time hasn't passed, you file the extension, and the UST decides not to pursue, then at least you may still have an opportunity to pursue yourself.

Did you request a Rule 2004 Exam? Do you even have a creditor attorney?

[Atlanta7]

Thank you !!