What is an adversary proceeding?

An adversary proceeding is a lawsuit within a bankruptcy case. It’s a separate, unique legal action filed by the debtor, the trustee, or creditors to address specific issues in a bankruptcy case. In Florida, adversary proceedings are filed in a bankruptcy court and handled by a judge from that court. Adversary proceedings are commonly instituted by creditors who are attempting to challenge the debtor’s discharge or certain aspects of the bankruptcy filing. For example, creditors may claim that the debtor intentionally concealed assets or has committed fraud. Adversary proceedings can also be filed by the debtor if they are challenging the validity of a creditor’s claim or are trying to reclassify non-dischargeable debt as dischargeable. The adversary proceeding process follows the basic rules of civil litigation and must be served upon all relevant parties. After the initial filing is made, each party is allowed to present evidence, make legal arguments, and potentially present witnesses. Ultimately, the court will render a decision and the result of the adversary proceeding will become a part of the bankruptcy court order. Adversary proceedings are often necessary for both debtors and creditors to resolve their differences and to fully understand their rights and obligations while undergoing bankruptcy proceedings. By undertaking an adversary proceeding with the assistance of an experienced bankruptcy attorney, debtors and creditors can confidently navigate the proceedings and ensure a fair outcome.

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