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Bankruptcy

adversary proceeding

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 Michigan, 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 issues such as the recovery of money or property, the determination of the validity or priority of a lien, the dischargeability of a debt, the seeking of an injunction, or the request for a declaratory judgment. Adversary proceedings are separate from the bankruptcy case itself but are related to it, and they require the same process as civil litigation, including discovery, trial, and the possibility of appeal. The outcomes of these proceedings can significantly impact the administration of the bankruptcy estate and the rights of the creditors and the debtor.

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Bankruptcy

adversary proceeding

Individual & Family Legal Plan

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Bankruptcy

adversary proceeding

Articles