Adversary proceeding in bankruptcy (USA)

An Adversary proceeding in bankruptcy, is a lawsuit in the American legal system filed by a party called a "plaintiff" against a party called a "defendant".

Procedure

Adversary proceedings are governed by certain court rules found in Part VII of the Federal Rules of Bankruptcy Procedure and, in part, by the Federal Rules of Civil Procedure. A bankruptcy "case" may contain one or more adversary proceedings (or none at all).

Adversary proceedings are initiated by filing a pleading document called a "complaint" with the court to resolve both federal and state law issues.

Adversary proceedings may be filed by the bankruptcy trustee or by other parties. For example, a creditor may file an adversary proceeding to object to the debtor's discharge. Or, a debtor may commence an adversary proceeding against a creditor as a response to a violation of the automatic stay. See generally Rule 7001(4) of the Federal Rules of Bankruptcy Procedure.

An adversary proceeding is more formal than a contested matter. A contested matter in bankruptcy is governed by Rule 9014 of the Federal Rules of Bankruptcy Procedure.

Student loans can be discharged through bankruptcy by use of the adversary proceeding. ["Bankrupt your student loans and other discharge strategies," by Chuck Stewart, Ph.D., ISBN 1-4259-2855-2. June 2006.]

ee also

*Bankruptcy in the United States

References