Legal Question in Bankruptcy in Virginia

What is an ''adversary proceeding'' in bankruptcy and how can I use it?

I'm a Va. attorney (State law) but I know nothing about bankruptcy. Interested in paying a bankruptcy attorney for assistance, without committing to appearing in case, or more as you desire. But my question: I see all these forms about ''adversary proceedings.'' My co-debtor in my 13 (he's 7) is owed $130,000 from the same org. that we allegedly owe $83,000 to. Can we bring an adversary proceeding in bankruptcy to collect the $130K he is owed (which would cancel out the $83K, and result in us both dismissing both bankruptcies)? Is it possible to ''remove'' a State court action to become a bankrtupcy ''adversary proceeding'' in order to consolidate all issues in one place? Is an adversary proceeding something narrow and limited or is it simply ANY lawsuit or claim that just happens to be in bankruptcy court? Is there anything special about the format or procedures, or is it simply like any other Federal case? I also need help with how to take a deposition. Any advice would be appreciated. And if it sounds interesting, anybody want to jump in and join the fun? I could use your help.


Asked on 1/22/05, 9:41 pm

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: What is an ''adversary proceeding'' in bankruptcy and how can I use it?

An adversary proceeding is essentially a lawsuit in bankruptcy court. Generally speaking (with a few modifications) the federal rules of civil procdure apply.

You may be able to bring your claim in bankruptcy court, or to remove it if timely. However, if purely a state law matter and not in the context of a core bankruptcy matter, the bankruptcy court may have to abstain and dismiss or remand to state court. If there is an objection to a proof of claim, that can be joined with a counterclaim, and litigated as an Adversary. Of course, the specifics will depend on the facts, and you would be well advised to consult in person with a bankruptcy lawyer.

I would be happy to consult with you on this. Feel free to call.

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Answered on 1/23/05, 8:00 am


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