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What Is An Adversary Proceeding in Bankruptcy

    An adversary proceeding is a separate lawsuit within a bankruptcy case that is initiated by a creditor, the trustee, or the U.S. Trustee. If a creditor files an adversary proceeding against you, it means that they are seeking to have a debt declared non-dischargeable in your bankruptcy case.

    Here’s what you should do if you are facing an adversary proceeding in your bankruptcy case:

    1. Take it seriously: Adversary proceedings are serious legal actions that can have a significant impact on your bankruptcy case, so it’s important to take them seriously.
    2. Hire an attorney: Consider hiring an experienced bankruptcy attorney to represent you in the adversary proceeding. An attorney can help you navigate the legal process, protect your rights, and negotiate with the creditor or trustee.
    3. Respond to the complaint: You must respond to the complaint within the time frame set by the court, usually 30 days. Your response should be in writing and should address each of the allegations in the complaint.
    4. Attend the hearing: You may be required to attend a hearing, where you and the creditor will present evidence and testimony. An attorney can help you prepare for the hearing and represent you in court.
    5. Follow the court’s order: If the court issues a decision in the adversary proceeding, you must follow the court’s order. If the debt is declared non-dischargeable, you will still be responsible for paying it after your bankruptcy case is concluded.

    Facing an adversary proceeding in bankruptcy can be a complex and stressful experience, so it’s important to take the necessary steps to protect your rights and interests. An experienced bankruptcy attorney can provide you with the guidance and support you need to navigate the process.