Adversary Proceedings in Bankruptcy

Lawsuits arising out of, or related to bankruptcy cases are a separate case, within a case. These special adversary proceedings are initiated by filing a complaint with the court to resolve both federal and state law issues. In general, an adversary proceeding is a separate proceeding outside of the administration of the estate, and constitutes a separate cause of action pursued to resolve a specific legal issues in a formal trial setting. Most typical consumer cases do not generate adversary proceedings, which can become quite expensive because of attorneys necessary in connection with formal litigation.