Lesson 75: Contested Matters

Contested matters in bankruptcy litigation refer to disputes that arise during the bankruptcy process which do not require the filing of an adversary proceeding. These disputes are usually resolved through motion practice and hearings.

Understanding Contested Matters

Contested matters are governed by Federal Rule of Bankruptcy Procedure 9014. This rule provides the procedural framework for resolving these disputes within the context of a bankruptcy case.

Types of Contested Matters

  • Objections to claims
  • Motions for relief from the automatic stay
  • Motions to dismiss a bankruptcy case
  • Motions for the use, sale, or lease of property

Procedure for Contested Matters

Unlike adversary proceedings, contested matters are initiated by filing a motion rather than a complaint. Here is the basic process:

  • Filing a motion
  • Serving the motion on interested parties
  • Response from opposing party
  • Court hearing
  • Court ruling
Note: Contested matters often require less formal procedures compared to adversary proceedings, allowing for quicker resolutions.

Example: Objection to a Claim

When a trustee or debtor objects to a creditor's claim, it initiates a contested matter. The process involves:

  • Filing an objection to the claim
  • Notifying the creditor
  • Creditor's response
  • Hearing before the bankruptcy judge
  • Judge's decision
Important: Always comply with the procedural rules and timelines to avoid having your motion or objection dismissed.

Merits and Proofs

During the hearing, both parties present evidence to support their positions. The burden of proof generally rests on the party initiating the motion.

graph TD; A["Motion Filed"] --> B["Notice to Parties"]; B --> C["Response from Opposing Party"]; C --> D["Hearing"]; D --> E["Court Ruling"]; classDef default fill:#f9f,stroke:#333,stroke-width:2px;

For more in-depth information on related topics, you may find the following books helpful:

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