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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.
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).
A party involved in a bankruptcy case can start an adversary proceeding by filing a complaint. This will describe the basis for the lawsuit and ask the court to provide a remedy for this party, known as the plaintiff.
An adversary proceeding (or ?AP?) is a lawsuit filed separate from but related to the bankruptcy case. It is an action commenced by one or more Plaintiffs filing a Complaint against one or more Defendants and resembles a typical civil case. The Plaintiff is the person, partnership or corporation initiating the lawsuit.
An adversary proceeding may refer to any case in which two opposing parties resolve a dispute through a neutral third party, however, the term is more frequently used to refer to a specific type of action in bankruptcy court.
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 may refer to any case in which two opposing parties resolve a dispute through a neutral third party, however, the term is more frequently used to refer to a specific type of action in bankruptcy court.
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.