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Bankruptcy Litigation

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The Meeting of Creditors (341 Meeting)

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The meeting of creditors, also known as the 341 meeting, is a mandatory meeting where the debtor is questioned under oath by creditors, the trustee, and the U.S. Trustee.

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Valuation Disputes

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Valuation disputes in bankruptcy involve disagreements over the worth of assets, which can affect distributions to creditors, plan confirmation, and lien stripping.

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Objection to Claims

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Objections to claims are formal disputes lodged against the validity or amount of a creditor's claim within the bankruptcy case.

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Executory Contracts and Unexpired Leases

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Executory contracts and unexpired leases are agreements that include unperformed obligations on both sides, which the bankruptcy trustee can assume or reject.

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Adversary Proceedings

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Adversary proceedings are lawsuits related to the bankruptcy case, initiated by filing a complaint in the bankruptcy court.

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Preference Actions

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Preference actions are lawsuits filed by the bankruptcy trustee to recover payments made to creditors before bankruptcy that unfairly favor one creditor over another.

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Discharge Injunction

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A discharge injunction is a permanent order issued at the conclusion of a bankruptcy case that prohibits creditors from attempting to collect discharged debts from the debtor.

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Non-dischargeable Debts

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Certain debts like alimony, child support, certain taxes, and debts from fraud cannot be discharged in bankruptcy, remaining the responsibility of the debtor post-bankruptcy.

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Reorganization Plan Confirmation

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Confirmation is the bankruptcy court's approval of a debtor's plan of reorganization, which must meet specific requirements under the Bankruptcy Code.

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Fraudulent Transfer Actions

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Fraudulent transfer actions are suits to reverse transactions made by the debtor that were meant to defraud creditors or that transferred assets for less than their value.

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Contested Matter vs. Adversary Proceeding

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A contested matter involves disputes in an existing bankruptcy case handled through motions, while an adversary proceeding is a separate lawsuit within the case.

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Sale of Assets in Bankruptcy

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The trustee or debtor in possession can sell assets free and clear of liens and interests with court approval, to pay off creditors similarly to liquidation in Chapter 7.

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Turnover Actions

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Turnover actions are proceedings to recover property or the value thereof that the bankruptcy estate has the right to, from entities holding it when the bankruptcy petition is filed.

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Bankruptcy Appeal Process

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The bankruptcy appeal process allows parties to challenge bankruptcy court decisions, first through the district court or bankruptcy appellate panel, and potentially up to the Supreme Court.

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Role of the Bankruptcy Court in Litigation

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Bankruptcy courts primarily handle litigation related to a debtor's insolvency proceedings, including disputes between the debtor and creditors, and within creditor classes.

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Substantive Consolidation

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Substantive consolidation is a doctrine where a court can treat the assets and liabilities of separate but related entities as a single entity for the purposes of a bankruptcy case.

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Equitable Subordination

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Equitable subordination is a legal remedy that changes the priority of a creditor's claim in bankruptcy, typically due to misconduct or unfair conduct.

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Proof of Claim in Bankruptcy

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A proof of claim is a written statement filed by a creditor to assert their right to receive a distribution from the bankruptcy estate.

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Lien Stripping

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Lien stripping is a process in bankruptcy that can remove junior liens from an asset, such as a home, when there is not enough equity to cover the lien's claim after senior liens are paid.

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The Automatic Stay

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The automatic stay is an injunction that stops most lawsuits, foreclosures, and collection activities against the debtor the moment a bankruptcy petition is filed.

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