A lawsuit filed within the context of a bankruptcy case is called an “adversary proceeding.” An adversary proceeding is typically filed by a creditor or the trustee responsible for the administration of the bankruptcy case and can pertain to a variety of legal issues, such as the recovery of money or property; the validity or priority of a lien; the determination as to the dischargeability of a debt; or the adjudication of a fraudulent transfer claim. An adversary proceeding can often pull parties into the bankruptcy that initially had little involvement, such as a business partner or the debtor’s spouse.

With some procedural nuances, an adversary proceeding is very similar to traditional civil litigation. For example, it is commenced with a complaint, to which the defendant must respond with either an answer or a motion to dismiss. The litigation team at Richards Carrington, LLC has handled multiple adversary proceedings in the United States Bankruptcy Court for the District of Colorado related to all kinds of legal issues, with an emphasis on fraud-related claims.