Adversary Proceeding
 

Adversary Proceeding 

An “adversary proceeding” is a lawsuit by a creditor against the debtor in Bankruptcy Court by a creditor objecting to a discharge usually based on allegations of fraud, false financial statements or purchases or cash advances close to the date of the bankruptcy filing. The Automatic Stay will not prevent “adversary proceedings,” but it will stop all State Court actions by a creditor against a debtor.