Adversary Proceedings
An adversary proceeding is a civil action (lawsuit) filed in or removed to the bankruptcy court. The Federal Rules of Bankruptcy Procedure require that certain proceedings be brought by adversary proceeding, including actions to determine whether student loan debts can be discharged. Bankruptcy litigation involves complex rules and issues specific to the bankruptcy court, so clients in these cases should seek the advice and counsel of an experienced bankruptcy attorney.
A separate lawsuit may originate in or be removed to bankruptcy court if it involves the debtor or property of a bankruptcy estate. When a debtor files for bankruptcy, a bankruptcy estate is automatically created comprising nearly all the debtor’s property interests, legal and equitable, tangible and intangible. If the debtor has the right to sue, that interest becomes property of the estate.
If you would like to learn more about Adversary Proceedings or would like to speak to an attorney, please contact us to schedule a free Initial Consultation.