An adversary proceeding is a lawsuit filed within a bankruptcy case. The most common adversary case is one filed by a creditor to obtain a determination from the bankruptcy court that the creditor‘s claim will not be discharged (or, wiped out) in the bankruptcy case.
Under the Bankruptcy Code, there are a number of reasons why a particular claim may not be dischargeable in bankruptcy. Claims arising from a divorce decree and claims arising from the debtor’s fraud or intentional misrepresentation are among the most common types of nondischargeable claims, however, there are many types of such claims.
The list of claims that are not dischargeable in Chapter 7 is different than the list of claims that are not dischargeable in Chapter 13. Further, if a creditor fails to timely file an adversary proceeding to protect a claim from discharge, the claim may be discharged regardless.
Adversary matters can also involve actions filed by a debtor’s trustee to recover property or money transferred by the debtor to a non-debtor (usually a friend or family member). We offer representation in all adversary matters and represent an equal share of debtors and creditors in such matters. Following is a list of our most common adversary cases:
- Contractor theft claims (plaintiff side and defense)
- Divorced spouse owed maintenance or worried that ex-spouse will not pay debts assigned to ex-spouse in Marital Separation Agreement
- Claims arising from bad (bounced) checks
- Trustee’s actions to recover gifts or transfers of property to friends or family members in the 1-year period prior to filing bankruptcy
- Claims between former business associates or affiliates
- Claims against former employees for breach of a non-compete agreement or for theft/embezzlement
- Objections to a debtor’s entitlement to a discharge