What is an adversary proceeding?
An adversary proceeding in Massachusetts bankruptcy law is a type of lawsuit that is filed in federal bankruptcy court. In this type of proceeding, a creditor (the person or business who is owed money) or the trustee (the person appointed by the court to manage a debtor’s property during bankruptcy proceedings) can file a lawsuit against a debtor. These adversary proceedings are also referred to as “contested matters,” because the creditor is seeking relief from the court on issues related to a debtor’s bankruptcy case. Adversary proceedings can involve a variety of matters, including determining if a debt is dischargeable (can be eliminated via bankruptcy), objecting to the discharge of a debt, determining if a lien on property is valid, or determining if a debtor can keep a particular asset. Each of these matters has specific requirements that must be met in order for the court to rule in favor of the creditor. Adversary proceedings are formal court proceedings, and creditors who are filing adversary proceedings must formally notify the debtor. The details of the lawsuit must be determined, and all parties must file paperwork and attend hearings in court. The debtor or the trustee may have to present witnesses or evidence at the hearing, and if necessary the judge may also issue subpoenas. Any decision that is made by the court with regards to an adversary proceeding is binding and enforceable.
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