What is an adversary proceeding?

An adversary proceeding is a type of lawsuit that occurs within a bankruptcy case in the state of Nebraska. It is a court proceeding in which opposing parties, such as the debtor (person filing the bankruptcy) and a creditor (person owed money), present evidence and may argue their case. Adversary proceedings usually involve disputes that arise under or in connection with the Bankruptcy Code, including violations of the Bankruptcy Code, charged in an action titled "adversary proceeding." Common adversary proceedings include cases involving alleged fraud by the debtor, challenges to the dischargeability of a debt, and disputes concerning exemptions, the right to a discharge, or the validity of a lien. The purpose of an adversary proceeding is to resolve disputes between the debtor and creditor. As such, the traditional court rules of evidence and procedure apply in an adversary proceeding. In Nebraska, the adversary proceeding is presided over by a Bankruptcy Judge, and is conducted according to the Bankruptcy Rules of Procedure. Adversary proceedings can be complex, and often require the assistance of an experienced attorney. To ensure the best outcome, it is important for a debtor to understand the process and the potential consequences of an adversary proceeding.

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