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Although it is pretty rare, a creditor can bring an adversary proceeding claiming that the debtor filed bankruptcy in bad faith. It is rare for a bankruptcy case to make it so far without that kind of dishonesty being uncovered, though. Why would a trustee file an adversary proceeding?
Sometimes an adversary proceeding will arise when a debtor owns property with someone else. The trustee may need to bring a lawsuit to divide your interest in the property from the interest of the co-owner so that they can force a sale and take the proceeds to pay your creditors.
After an adversary complaint is filed, the defendant has a specific deadline to file and serve a written response to the complaint, and then a series of pre-trial hearings/conferences take place until the lawsuit is settled, dismissed, or goes to trial.
The proper procedure is to file a motion to compromise and settle in the legal case, not the adversary proceeding. That pleading should only have the legal caption, as the body of the motion should contain the adversary proceeding information.
The other pleading periods in adversary proceedings are the same as those in civil actions before the district courts, except that the United States is allowed 35 rather than 60 days to respond.
Motion to Dismiss Adversary Proceeding Select Adversary menu. Select Motions. Enter the case number using correct format and ensure case name and number match the document you are filing. Select Document event: Dismiss Adversary Proceeding (motion). Select the party filer.
Editor's Note: Litigation in a bankruptcy occurs in two contexts: a contested matter (initiated by motion, application, or other filing in the main case) or an adversary proceeding (initiated by a complaint, with its own case number and docket).