An adversary proceeding in bankruptcy is a type of lawsuit in the American legal system.
Or, a debtor may commence an adversary proceeding against a creditor as a response to a violation of the automatic stay.
Very commonly, the debtor-in-possession in a Chapter 11 reorganization of a business debtor will initiate adversary proceedings against a party with whom the debtor had an executory contract, against whom it had a claim in tort, or to whom it made a preferential transfer prior to filing for bankruptcy, intending to collect funds to maximize working assets.
A debtor can attempt to discharge student loans through bankruptcy by use of the adversary proceeding.
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