An adversary proceeding is a formal legal dispute between parties in a court proceeding, typically within bankruptcy proceedings but also in other areas of law. In bankruptcy, an adversary proceeding is a separate lawsuit initiated by a party involved in the bankruptcy case, such as a creditor, debtor, or trustee. These proceedings are used to resolve specific disputes that cannot be adequately addressed within the main bankruptcy case, such as objections to the discharge of debts, challenges to the validity of liens, or disputes over the classification of debts. Adversary proceedings follow the same procedural rules as traditional civil litigation, including pleadings, discovery, motions, and trials, and they are adjudicated by the bankruptcy court. The outcome of an adversary proceeding can have significant implications for the parties involved in the bankruptcy case, affecting their rights, obligations, and distribution of assets.
One having opposing parties such as a plaintiff and a defendant. Individual lawsuit(s) brought within a bankruptcy proceeding.
Any action, hearing, investigation, inquest, or inquiry brought by one party against another in which the party seeking relief has given legal notice to and provided the other party with an opportunity to contest the claims that have been made against him or her. A court trial is a typical example of an adversary proceeding.
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This glossary post was last updated: 29th March, 2024.
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