Bankruptcy Adversary Proceedings

Bankruptcy adversary proceedings are legal lawsuits filed within a bankruptcy case, where one party (such as a creditor or the debtor) sues another to resolve specific issues not settled through the main bankruptcy process. These disputes can involve claims like challenging the validity of a debt, recovering assets, or addressing misconduct. Unlike the general bankruptcy case, adversary proceedings are separate lawsuits that require their own legal process but are handled within the broader bankruptcy proceeding. They help clarify rights and resolve disputes that impact how the bankruptcy estate is managed or distributed.