MenuWhen a bankruptcy case is filed, there is a debtor, creditors, a trustee, and other such parties. While the interests of these parties may diverge, there may not be any direct one-on-one adverse relationship between any two parties.
Adversary Proceeding
An adversary proceeding is a bankruptcy court lawsuit. The name comes from the fact that unlike a bankruptcy case such as one generated by filing a chapter 7 petition, an adversary proceeding has adversarial parties: plaintiff(s) and defendant(s). Usually at least one party is a debtor, creditor, or bankruptcy trustee.
