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The court held to its earlier conclusion that the automatic stay does not apply to the removal of a state court action to bankruptcy court. It reasoned that such a removal merely commences an adversary proceeding against the debtor, and commencing an adversary proceeding is not subject to the automatic stay.
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 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.
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.
An adversary proceeding begins with the filing of a complaint to initiate the proceeding. In contrast, a contested matter occurs within the bankruptcy case. A contested matter starts with a motion filed in the bankruptcy case itself.
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.