What is An Adversary Proceeding in bankruptcy?
For most chapter 7 and chapter 13 cases, the words adversary proceeding will not come up. Most clients will complete their bankruptcy without having any. If you have an adversary proceeding or there is a chance that you may, you may be wondering what it is? An adversary proceeding is litigation within your bankruptcy case.
Common examples are, objections to discharge of certain debts, objections to your bankruptcy discharge overall, fraudulent transfers, and preference claims. These are example of adversary proceedings against you, but you can also bring them against your creditors. For example, if a creditor violates the automatic stay in bankruptcy.
What will happen if you receive notice of an adversary proceeding? First, there will be a summons and complaint issued. The information in the summons and complaint will provide you details of next steps, including a date for when an answer is due and the details of why the proceeding was brought against you. If you decide to write an answer, the adversary proceeding will move forward with a hearing and litigation. If you do not answer, the adversary likely will be granted by default. This is a general overview, but adversary proceedings can also go through mediation to negotiate or they can be withdrawn.
Although this is general information, each case is different. Always speak with an attorney if you have any questions at all about adversary proceedings. Even though they do not happen in every case, they do happen.
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For any questions you have regarding adversary proceedings or bankruptcy in general, visit www.lifebacklaw.com to speak with an attorney today. You will be glad you did!
