ADVERSARY PROCEEDINGS AND CONTESTED MATTERS
Adversary proceedings are often brought by the trustee in a chapter 7 bankruptcy (or a debtor in possession in a chapter 11) but can also be brought by aggrieved creditors. Fraudulent transfers by a debtor shortly before filing bankruptcy would be an impetus for a trustee filing an adversary proceeding against third party transferees of the debtor. Procedurally, objections to discharge and/or dischargeability are also brought through the opening of an adversary proceeding and filing of a complaint. Contested matters, although similar to adversary proceedings, do not require the filing of a separate lawsuit, but rather are litigated in the underlying bankruptcy case. An example of a contested matter is a debtor or trustee’s objection to the proof of claim filed by a creditor. Different bankruptcy courts throughout the country have varying local rules on the procedures governing contested matters, but the bankruptcy code and bankruptcy rules of procedure set forth the framework governing contested matters.
A contested matter will include requests for relief in a bankruptcy case contested by one or more parties. For more information, or to schedule a consultation, contact the Law Offices of Paul A. Humbert, P.L. today.