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 New Hampshire, 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 disputes that cannot be resolved within the main bankruptcy case. Common issues addressed in adversary proceedings include attempts to recover money or property, disputes over the validity or priority of liens, questions regarding the dischargeability of certain debts, requests for injunctions, and petitions for declaratory judgments. The outcomes of these proceedings can significantly impact the rights of creditors, the bankruptcy estate, and the debtor. It is important for parties involved in a bankruptcy case to understand that some issues must be addressed through an adversary proceeding and to follow the specific procedural rules that apply to these cases.