What is an adversary proceeding?

An adversary proceeding is a type of legal action within a bankruptcy case. It involves a dispute between the debtor (the person filing for bankruptcy) and a creditor, or between two creditors. Because a bankruptcy case is a civil action, an adversary proceeding is a separate civil lawsuit related to the bankruptcy case. In Rhode Island, adversary proceedings usually involve two parties. The party initiating the action is called the plaintiff, while the party defending against the action is called the defendant. Adversary proceedings can be used to settle disputes involving property rights, priority of payments, and amount of the debt. Generally, the goal of an adversary proceeding is to determine if the debt is dischargeable—whether the debtor is legally required to pay the debt or not. Adversary proceedings can also be used to determine if a lien, such as a mortgage, is valid. If the lien is determined to be valid, the creditor may be able to recover some or all of the unpaid debt through the lien. Adversary proceedings in Rhode Island must comply with the rules set forth by the Rhode Island Bankruptcy Court. These rules include deadlines, filing requirements, and legal proceedings. An experienced bankruptcy attorney can provide advice and guidance throughout the bankruptcy process, including adversary proceedings.

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