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What happens in a adversary proceeding?

An adversary proceeding (or \u201cAP\u201d) is a lawsuit filed separate from but related to the bankruptcy case. It is an action commenced by one or more Plaintiffs filing a Complaint against one or more Defendants and resembles a typical civil case. The Plaintiff is the person, partnership or corporation initiating the lawsuit.

What is an adversarial proceeding in bankruptcy court?

An "Adversary Proceeding" in bankruptcy court has the same meaning as a lawsuit in other courts. This means that one or more "plaintiff(s)" file a "complaint" against one or more "defendant(s)." In many situations an adversary proceeding is required if a plaintiff wants to obtain a particular type of relief.

What is an AP case?

An adversary proceeding (or \u201cAP\u201d) is a lawsuit filed separate from but related to the bankruptcy case. It is an action commenced by one or more Plaintiffs filing a Complaint against one or more Defendants and resembles a typical civil case.

What is an adversarial action?

An adversary proceeding can technically refer to any case in which two opposing parties resolve a dispute through a neutral third party, however, the term is more frequently used to refer to a specific type of action in bankruptcy court.

How do you settle an adversary proceeding?

One way to settle the adversary complaint is for the debtor to agree that all or a portion of the debt will be non dischargeable. In such a scenario, the debtor can agree to use his or her post petition earnings to settle the claim.