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- When an adversary proceeding is required
- Adversary proceedings and contested matters are different
- How the lawsuit begins
- Service requirements can be exacting
- What happens after service
- Discovery and evidence
- How an adversary proceeding can end
- Discharge and dischargeability disputes
- Reading procedural dates correctly
- Sources
Key Facts
- Federal level: An adversary proceeding is a lawsuit connected to a bankruptcy case and governed by Part VII of the Federal Rules of Bankruptcy Procedure.
- Federal level: Rule 7001 identifies the disputes that require this procedure, including many actions involving money or property, liens, discharge, dischargeability, and equitable relief.
- Federal level: The proceeding begins with a complaint, followed by issuance and proper service of a summons and complaint.
- Federal level: Part VII supplies rules for commencement, service, responses, discovery, and summary judgment in an adversary proceeding.
An adversary proceeding is a civil lawsuit conducted within the federal bankruptcy system. Rule 7003 provides that it begins with a complaint. By contrast, a contested matter generally begins by motion under Rule 9014.
The distinction matters because not every disagreement in bankruptcy law follows the same procedure. Rule 7001 identifies matters that must proceed under the more formal Part VII rules, while Rule 9014 generally governs disputes treated as contested matters.
When an adversary proceeding is required
Rule 7001 lists ten categories of adversary proceedings. They include many proceedings to recover money or property; determine the validity, priority, or extent of a lien or other property interest; obtain authority to sell a co-owner’s interest with estate property; object to or revoke a discharge; revoke an order confirming a Chapter 11, 12, or 13 plan; and determine whether a particular debt is dischargeable.
The list also includes proceedings for an injunction or other equitable relief, to subordinate an allowed claim or interest, for a declaratory judgment related to a listed matter, and to determine a claim or cause of action removed to bankruptcy court under 28 U.S.C. § 1452.
Several categories contain express exceptions. For example, Rule 7001 excludes specified turnover, lien, discharge, and plan-based procedures from the adversary framework. The requested relief and the governing exception therefore matter more than the label a party gives the filing.
Adversary proceedings and contested matters are different
A contested matter usually begins by motion under Rule 9014. Relief from the automatic stay, for example, is handled by motion rather than by an adversary complaint. Rule 9014 applies selected Part VII rules to contested matters and also permits the court to direct that additional Part VII rules apply.
An adversary proceeding uses several procedures drawn from ordinary federal civil litigation. Rules 7003, 7004, 7012, 7026, and 7056 address commencement, service, responses, discovery, and summary judgment.
How the lawsuit begins
Rule 7003 applies Federal Rule of Civil Procedure 3, under which a civil action begins by filing a complaint. The advisory note explains that the complaint is generally filed with the court where the underlying bankruptcy case is pending, subject to any applicable venue authority.
Filing the complaint is only the beginning. Rule 7004 governs issuance and service of the summons and complaint. It incorporates parts of Civil Rule 4 and supplies bankruptcy-specific methods, including specified service by first-class mail within the United States.
Service requirements can be exacting
Rule 7004’s method depends on who the defendant is. The rule has separate provisions for individuals, corporations and associations, government entities, debtors, and insured depository institutions. A represented debtor’s attorney must also be served as the rule provides.
A summons and complaint served by the delivery methods identified in Rule 7004(e), or deposited in the mail, generally must be served or mailed within seven days after the summons is issued. If that window is missed, the rule requires a new summons.
What happens after service
Rule 7012 applies most of Civil Rule 12, including defenses raised by answer or motion and motions for judgment on the pleadings. Unless the court sets a different time, the defendant generally must serve an answer within 30 days after the summons was issued. Special timing provisions apply to the United States and its officers and agencies.
A Rule 12 motion can challenge matters such as jurisdiction, service, or whether the complaint states a claim.
Discovery and evidence
Rule 7026 applies Civil Rule 26 to adversary proceedings, with bankruptcy-specific modifications. Discovery can include document requests, written questions, requests for admission, depositions, disclosures, and expert-related materials when the applicable rules permit them.
The discovery process is tied to the claims and defenses in the proceeding. Scheduling orders, protective orders, and proportionality limits can shape what must be produced and when.
How an adversary proceeding can end
Rule 7056 applies Civil Rule 56, allowing summary judgment when the movant shows there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law. If material factual disputes remain, the proceeding may move toward trial.
Rule 7012 permits specified motions before trial, including a motion for judgment on the pleadings. Rule 7056 separately permits a supported request for summary judgment. If neither procedure resolves all claims, unresolved factual issues may proceed toward trial.
Discharge and dischargeability disputes
Two similar phrases address different questions. An objection to discharge challenges whether the debtor receives a discharge of debts generally under the relevant Bankruptcy Code provision. A dischargeability action asks whether a particular debt is excepted from discharge.
Rule 7001 places both specified objections to discharge and proceedings to determine dischargeability within the adversary process, subject to its stated exceptions. The applicable Bankruptcy Code section, bankruptcy chapter, and Rule 7001 exception must be checked for the particular claim.
Reading procedural dates correctly
Rule 7004(e) measures its seven-day service period from issuance of the summons, while Rule 7012 generally measures the answer period from issuance of the summons unless the court sets another time.
Because Rule 7001 and Rule 9014 assign different procedures to different forms of relief, the requested remedy and any express exception should be checked before choosing between a complaint and a motion.
