Portland Bankruptcy Attorney

Can I Get an Award of Attorney Fees If a Creditor Challenges My Bankruptcy?

Section 523(d) of the Bankruptcy Code provides that, in certain circumstances, a creditor must pay the costs and reasonable attorney fees for litigating any issue related to determining whether a debt is dischargeable, if the court ultimately decides that the debt is dischargeable.

Such a situation can be stressful and confusing, so it is always important to consult with a bankruptcy attorney Portland Oregon if you are considering such a course of events.

The rules states that it is mandatory to award attorney fees to the debtor if all of the following things exist:

1.  the creditor sought to have the debt determined to be nondischargeable under Section 523(a)(2);
2. the debt must have been a consumer debt;
3. the debt must ultimately be found to be dischargeable;
4. the creditor's position must not be substantially justified; and
5. no special circumstances exist that would make an award of attorney fees and costs unjust.