Adversary proceedings are a federal lawsuit within the bankruptcy process which is started by filing a complaint with the bankruptcy court against one or more defendants and is used to determine the validity of certain claims.
Persons, partnerships or corporations can be plaintiffs in an adversary proceeding and initiate the lawsuit. Federal Rules of Bankruptcy Procedure and the Federal Rules of Civil Procedure govern adversary proceedings, and a non-exclusive list of proceedings is established under Federal Bankruptcy Rule 7001. Adversary proceedings include three sections: the complaint, service or process and the answer.
Reasons for an Adversary Proceeding outlined in Fed. R. Bankr. P. 7001. include: (1) to recover money or property, except a proceeding to compel the debtor to deliver property to the trustee, or a proceeding. (2) to determine the validity, priority, or extent of a lien or other interest in property, other than a proceeding, (3) to obtain approval for the sale of both the interest of the estate and of a co-owner in property, (4) to object to or revoke a discharge, (5) to revoke an order of confirmation of a Chapter 11, Chapter 12, or Chapter 13 Bankruptcy plan, (6) to determine the dischargeability of a debt, (7) to obtain an injunction or other equitable relief, (8) to subordinate any allowed claim or interest, except when subordination is provided in a Chapter 9, 11, 12, or 13 Bankruptcy plan, (9) to obtain a declaratory judgment relating to any of the foregoing, or (10) to determine a claim or cause of action removed pursuant to 28 U.S.C. § 1452.
More Help on Adversary Proceedings
- Bankruptcy Court - United States federal courts have jurisdiction over all bankruptcy cases and the cases are not allowed to be filed in state court. - read more
- Claim - A claim is considered the creditor\'s right to payment against a Debtor who has filed bankruptcy. - read more
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