An adversary proceeding is the bankruptcy court’s version of a complaint or petition in civil litigation. The adversary proceeding is governed by Federal Rule of Bankruptcy Procedure (FRBP) Rule 7001 and among other purposes, is a proceeding to recover money or property, or determine the validity or priority of a lien, or determine the dischargeability of a debt, or to obtain an injunction, or to obtain a declaratory judgment.
In Maryland, as in all states, adversary proceedings in bankruptcy are governed by the Federal Rules of Bankruptcy Procedure (FRBP), specifically Rule 7001. These proceedings are akin to civil lawsuits within the context of a bankruptcy case. They are initiated by filing a complaint with the bankruptcy court to address specific issues that cannot be resolved within the main bankruptcy case. Common matters addressed in adversary proceedings include the recovery of money or property, determination of the validity or priority of liens, the dischargeability of debts, requests for injunctions, and seeking declaratory judgments. The outcomes of these proceedings can significantly impact the rights of the parties involved in the bankruptcy case. It is important to note that while federal law provides the framework for adversary proceedings, local rules and procedures of the bankruptcy court in Maryland may also apply.