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.
In most cases, liabilities resulting from prior lawsuit judgments also qualify as unsecured assets. If you're in the process of being sued by an individual, declaring bankruptcy may not absolve you of your liability for any potential judgment.Such lawsuits commonly occur after a vehicle accident for which you're deemed to be at fault.ritten by James Hirby | Fact checked by The Law Dictionary staff. With few exceptions, declaring bankruptcy will absolve you of your responsibility to pay off your outstanding unsecured debts in full.