Trade Tip #9: What is an “Adversary Proceeding”?

An adversary proceeding is essentially the bankruptcy court’s version of a civil action to recover money or property (other than a proceeding to compel the debtor to deliver property to the trustee) or a proceeding under section 554(b) or section 725 or Bankruptcy Rule 2017 or 6002.

An adversary proceeding is opened by filing a complaint asking the court to rule on an issue related to a bankruptcy case. The adversary proceeding is given a new case number that is separate from the number of the associated bankruptcy case.

Read Dealing with Corporate Distress 02: These Are the People in Our Neighborhood: An Overview of Parties in Chapter 11 to learn more.