Property Insurance. One type of policy that for most people that is actually mandatory to have is homeowners insurance when you have a mortgage. If you borrow money from the bank to purchase a home they will require the asset to be insured. For many people,â this insurance premium is built into the mortgage payment.
Adversary Proceedings in Bankruptcy. An adversary proceeding in bankruptcy is a separate lawsuit filed within the bankruptcy case. Like most lawsuits, it starts when someone (the creditor, the bankruptcy trustee, or you) files a complaint. Many bankruptcies go through to completion and discharge without any adversary proceedings. But not so in others.
A judgment creditor has options for collecting the debt that other creditors don't have. These include wage garnishment orders and even seizing your property. However, once you file for either Chapter 7 or Chapter 13 bankruptcy, creditors named in the petition must stop all collection efforts. Once a judge signs the discharge order, the process is complete and you no longer have any legal responsibility to any discharged debt, including a covered civil judgment.