Chapter 7 bankruptcy is a legal proceeding that discharges, or eliminates, an individual’s debts. In other words, the individual, referred to as a debtor, won’t have to repay creditors. Sometimes though, a Chapter 7 bankruptcy won’t run as smoothly when there is an adversary complaint.
An adversary complaint is a lawsuit filed during a bankruptcy case requesting relief. Although it is part of the bankruptcy case, it has a different case number. The plaintiff files the lawsuit and is responsible for serving the defendant a copy of the complaint. The complaint explains the facts of the case and asks the bankruptcy court to enter a judgment in the plaintiff’s favor.
An adversary complaint is filed for many reasons, such as:
There are three parties can file a complaint in a Chapter 7 bankruptcy case:
Typically, when a creditor initiates an adversary proceeding it’s because the creditor doesn’t want the debt to be discharged.
The main reason a chapter trustee files a complaint is to argue for the bankruptcy petition to be dismissed. A bankruptcy petition can be dismissed for one or more of the following reasons:
Yes, contact a bankruptcy lawyer. An adversary complaint usually requires a separate attorney from the bankruptcy attorney over your petition.
Last Modified: 03-25-2016 12:22 PM PDTLaw Library Disclaimer
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