What is an adversary complaint?
An adversary complaint is a lawsuit within the bankruptcy case. For instance, if you file a bankruptcy and one of your creditors believes that the debt you owed to them is a debt that should not be eliminated, the creditor may file a lawsuit within the bankruptcy itself to prove that the debt is non dischargeable and should remain after the bankruptcy. This is not a common situation, but it does occur.
There are also times when you as the Debtor may file an adversary complaint against a creditor. This may be done for any number of reasons.
Often this office files adversary complaints or contempt motions against creditors who do not follow the rules. For instance, when you file bankruptcy, a cease and desist order called the automatic stay is lodged against all creditors. This will stop very quickly all collection activity. But in some situations, creditors continue to collect even after your bankruptcy is filed.
One method to resolve this is to file an adversary complaint against your creditor to enforce the bankruptcy protection and compensate you for the ongoing harassment after the bankruptcy is filed.
This office files adversary complaints against creditors on a regular basis for clients who continue to be harassed after their bankruptcy is filed.
If an adversary complaint is pending prior to the discharge, the adversary case will continue even after the discharge until it is resolved.