[CLBS] Adversaries

[Savi Grewal]

Dear List mates:

 

Does anyone know the most economical way to handle multiple 523(a)(2)
adversary complaints and a UST’s 727(a) complaint in relation to a Chapter 7
Bankruptcy.  

 

The situation is that debtor files a Chapter 7 Bankruptcy.  Several
non-institutional creditors file 523(a)(2) adversaries.  While Debtor is
working on defending one or more of them the UST, after several extension of
their deadlines and after reviewing the debtor’s extensive financial
records, files a 727(a) adversary.  It is cost prohibitive for an insolvent
debtor to defend these on all fronts.  Do the individual adversaries become
moot once the UST has filed?  My first impression is not, because, if the
UST is not successful in the 727 action then the individual creditors may
want to pursue their 523(a)(2) claims.  Is consolidation a viable option
under Rule 42?  Is there any other cost effective option?

 

I will appreciate any input I can get on this matter.  

 

Thanks.   

 

Savi Grewal

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