Texas Adversary Proceeding Cover Sheet
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FAQ
Once an adversarial proceeding has begun, a court may refuse to discharge debts if a creditor can show that those debts are the result of the debtor's fraud or the debtor failed to properly disclose information as per USC 27 §727.
An "Adversary Proceeding" in bankruptcy court has the same meaning as a lawsuit in other courts. This means that one or more "plaintiff(s)" file a "complaint" against one or more "defendant(s)." In many situations an adversary proceeding is required if a plaintiff wants to obtain a particular type of relief.
An adversary proceeding is the bankruptcy court's version of a civil action (a lawsuit). An adversary proceeding is opened by filing a complaint asking the court to rule on an issue related to a bankruptcy case.
For example, they might want to object to a discharge, get an injunction, obtain a ruling on whether a debt can be discharged, or pursue money from a party not in the bankruptcy proceeding. A party involved in a bankruptcy case can start an adversary proceeding by filing a complaint.
A party filing an adversary proceeding must also must complete and file Form 1040, the Adversary Proceeding Cover Sheet, unless the party files the adversary proceeding electronically through the court's Case Management/Electronic Case Filing system (CM/ECF).
A defendant can respond to an adversary proceeding by filing an answer or a motion (e.g., a motion to dismiss the complaint) within 30 days from the date of the summons. If the defendant fails to file a responsive pleading, the bankruptcy judge can enter a default judgment against the defendant.