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The primary reason an individual goes for bankruptcy is to get their debts discharged by an order from the court. Once they get the discharge, they no longer need to worry about repayments to their creditors. However, the road to financial freedom is not always easy. Bankruptcy proceedings can be complicated, and sometimes the creditors could file for contests against the bankruptcy of a debtor.

What is a contested bankruptcy?

A contested bankruptcy occurs when one or more of the creditors in a bankruptcy proceeding raises issues with your right to a discharge. This could be slightly detrimental to a debtor in getting his debts discharged, but these contests can be dealt with an attorney's help or if the creditors do not show enough evidence to support their charges.

Why do creditors go for a contested bankruptcy?

When creditors go for a contest, they do not do it to make the debtors pay back their due debts. Most creditors have insurances that protect them from any losses. The creditors generally take this route to remove any debtors that have unfair advantages of the procedure. For example, a creditor may contest a bankruptcy if they find out you have hidden some of your property or assets.

How do the creditors prove the allegations?

Considering the seriousness with which the creditors take this step, they may only do it if they have credible evidence against the debtor. The burden of proof is on the creditors in court. If the creditors provide the proof, the court will give ample time to you as a debtor to defend yourself against the evidence brought against you. So if you as a debtor have not taken any fraudulent steps since the start of the proceedings, you need not worry about any action against you.

The best way to avoid contests is to provide your attorney and the judges with as much evidence as possible right from the beginning of the proceedings. Contacting a Roseville bankruptcy attorney can help you get the best representation to relieve your financial burdens.