An adversary proceedings In Oklahoma bankruptcy involves an objection to the discharge of a debt. They can file these in most kinds of bankruptcy. The most common filing of adversary proceedings are in chapter 7 and chapter 13 cases. As someone facing bankruptcy, understanding the intricacies of the bankruptcy process is of utmost importance. One particular area that might seem a bit murky is the concept of an adversary proceeding. Here’s what you need to know about adversary proceedings, how they factor into bankruptcy cases, and how to file a complaint if you need to start one.
Unraveling The Definition Of An Adversary Proceeding
Essentially, an adversary proceeding is the bankruptcy court’s equivalent of a civil lawsuit. It is a separate lodging of a legal dispute within the wider bankruptcy case. When an adversary proceeding is initiated, a new, distinct case number is given to this sub-case, setting it apart from the broader bankruptcy case. Any documents or filings related to the adversary proceeding will carry this unique case number.
Just like any civil lawsuit, an adversary proceeding will launch by filing a formal complaint. This complaint will request that the court make a ruling on a specific issue tied to the bankruptcy case.
The Federal Rules of Bankruptcy Procedure (FRBP) govern adversary proceedings. According to FRBP 7001, certain types of proceedings must be lodged as adversary proceeding complaints by creditors and/or other parties of interest.
Some of the actions that necessitate an adversary proceeding include:
- Filing an objection to or a revocation of the debtor’s discharge for a specific debt
- Determining the eligibility of a specific debt to be discharged
- Revoking the confirmation of a repayment plan
- Subordinating a claim or interest
Difference Between A Bankruptcy Case And An Adversary Proceeding
A common question we encounter as a bankruptcy law firm is: How does an adversary proceeding differ from a broader bankruptcy case? A filer’s bankruptcy case involves a debtor, their debts, and their desire to discharge those that are eligible for such relief. By contrast, an adversary proceeding like a separate lawsuit within the bankruptcy case. It involves one or more interested parties filing a complaint against the filer in an effort to seek their own kind of relief.
Under certain circumstances, an adversary proceeding may be necessary if a plaintiff doesn’t feel that the filer’s case is fair, as it infringes upon their interests somehow.
After the filing of the complaint, the filer must respond to it by a specific deadline. Then, the court will schedule a series of pre-trial hearings or conferences until the settlement of the adverse proceeding, resolution via trial, or dismissal.
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Bankruptcy Lawyer Near You
Navigating the complexities of a bankruptcy case and potential adversary proceedings can be daunting. However, you don’t have to face this journey alone. Our team of Tulsa Okla. bankruptcy attorneys is ready to guide you every step of the way. Get a free consultation today so you can make informed decisions about your financial future. Call Kania Law Office at (918) 743-2233 or contact us online.