November 10th, 2008 by Reed Allmand 
An adversary proceeding during bankruptcy is when someone brings an issue or problem before a judge in an effort to collect damages or have the judge take an action against someone else. There are only 3 parties who can bring an adversary proceeding before a bankruptcy judge; the creditor, the bankruptcy trustee and the debtor.
Usually when a creditor files an adversary proceeding with the bankruptcy court it is usually because they are claiming that a debt should not be discharged because the debtor created the debt through fraud, personal injury or some other reason that would prevent a discharge.
When a bankruptcy trustee files an adversary proceeding with the bankruptcy court, it is sometimes because something was done incorrectly or fraudulently on the part of the creditor or debtor. For example, the bankruptcy trustee may file an adversary proceeding to retrieve money from a creditor that was received improperly from the debtor.
Finally when a debtor files an adversary proceeding against a creditor he/she is usually taking action because the creditor has violated a bankruptcy law such as, ignoring an automatic stay or collecting on a debt that was discharged in bankruptcy.
About Reed Allmand
Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."
View all posts by Reed AllmandSubscribe
Subscribe to our e-mail newsletter to receive updates.
