An adversary proceeding is the bankruptcy court’s version of a complaint or petition in civil litigation. The adversary proceeding is governed by Federal Rule of Bankruptcy Procedure (FRBP) Rule 7001 and among other purposes, is a proceeding to recover money or property, or determine the validity or priority of a lien, or determine the dischargeability of a debt, or to obtain an injunction, or to obtain a declaratory judgment.
In Texas, as in all states, adversary proceedings in bankruptcy are governed by the Federal Rules of Bankruptcy Procedure (FRBP), specifically Rule 7001. These proceedings are akin to civil lawsuits within the context of a bankruptcy case. They are initiated by a party filing a complaint to resolve disputes that are not handled by the main bankruptcy case. Common issues addressed in adversary proceedings include the recovery of money or property, determination of the validity or priority of liens, the dischargeability of debts, requests for injunctions, and seeking declaratory judgments. These matters are litigated separately from the bankruptcy case but are related to it and are heard by the bankruptcy court. The outcomes of adversary proceedings can significantly impact the rights of creditors, the bankruptcy estate, and the debtor. It's important to note that while these proceedings are federal in nature, they may sometimes involve applying state law to certain issues, such as the characterization of property rights.
