What is an adversary proceeding?

An adversary proceeding is a legal conflict between two or more parties in the court of law, usually involving creditors and debtors. It is a lawsuit brought by one party, usually a creditor, against another party, usually a debtor, in order to collect an outstanding debt or to take other action against the debtor. In New York, an adversary proceeding is a formal lawsuit within a bankruptcy case when a creditor or any other party files a complaint against a debtor asking for some kind of relief. This could include asking for a court order that the debt is not discharged in bankruptcy, or asking for the court to allow the creditor to take some action against the debtor, such as seizing and selling property. An adversary proceeding is usually a formal court proceeding before a judge, and it usually requires both parties to present evidence and make arguments to support their claims.

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