Arm Yourself For Battle With Creditors

Most contests have rules. Charny wrote on medieval jousting; Hoyle on cards; Queensberry on boxing.

Rule 9014 provides the rules of bankruptcy disputes.

9014 recognizes contested matters: disputes in bankruptcy cases that don’t require an adversary proceeding but do require the court to decide a disputed issue.

You can hardly be an effective player if you don’t know the rules.

What’s a contested matter?

Any time there are at least two sides to an issue that needs to be made by a judge, you have a contested matter.

Think:

objection to confirmation;
objection to proof of claim;
objection to claim of exemption;
opposition to motion to avoid lien impairing an exemption.

Each arises in the administration of a case or in motion practice. Absent a negotiated settlement, each will require the court to enter an order resolving the matter.

That’s a contested matter.

Rule book

With a few exceptions, Rule 9014 gives the parties to a contested matter the rights and tools that parties to an adversary have:

Notice as provided in Rule 7004. Note that provides for service on banks by certified mail addressed to an officer
Discovery, including production of documents, depositions and interrogatories
Live testimony at an evidentiary hearing
Costs to a prevailing party

The Part VII rules applicable to contested matters allow you to flush out information in the possession of your opponent.

Get a nonsensical objection to plan confirmation? propound some discovery. Ask for admissions; demand production of documents.

Make the opposition flesh out their position or admit it is knee jerk nonsense. Each of those Part Vll tools is available in a contested matter.

That’s real power. Let the games begin.

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