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January 30, 2020 at 1:17 pm #20764WillieeArmelliniKeymaster
Boonstle Inc Chapter 7 Bankruptcy Filing 12/31/2019
Look for a challenge here. There may be many “twists and turns”
Stay tuned, the Courts closed today!
Adversary proceedings are a separate procedural process in a bankruptcy. In a
bankruptcy case, there is a debtor and there are creditors, but in an adversary proceeding
there is a plaintiff and there is a defendant. The plaintiff initiates the adversary proceeding,
and the defendant is the responding or defending party.
The adversary proceeding is initiated by the plaintiff who files a complaint. After
the defendant has been served with a summons issued by the court along with a copy of the
complaint, the defendant files an answer. The defendant may, but is not required to, file a
motion to dismiss or use other procedural mechanisms, such as requesting that another
party join the case. The case then moves into discovery, where parties exchange
information and obtain evidence to support their respective claims.
The rules that govern adversary proceedings are found in Part VII of the Federal
Rules of Bankruptcy Procedure. Fed. R. Bankr. P. 7001 identifies the types of actions that
would be considered adversary proceedings.
A creditor may find itself as a defendant in an adversary proceeding if it received a
preferential payment, or if the a debtor seeks to determine whether a particular debt is
discharged. A creditor may also be a plaintiff in an adversary proceeding if the creditor
seeks a determination of nondischargeability of the debt owed.
Whether you are bringing an adversary proceeding, or find yourself defending an
adversary proceeding it is important to know that adversary proceedings can be
exceptionally complicated. The procedural rules are identical in most respects to the
Federal Rules of Civil Procedure. Discovery mechanisms such as depositions and requests
for production might be utilized.
The Court’s final decisions will be based on evidence. Those final decisions may be
based on motions (see e.g. Fed. R. Bankr. P. 7056) or following a trial, where witnesses are
examined and cross examined and documents are admitted into evidence.
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