Adversary Proceedings in United States Bankruptcy Court

1Dear [FIRSTNAME], The topic of the newsletter this week is a brief discussion of adversary proceedings in United States Bankruptcy Court. An adversary proceeding is best described as a lawsuit filed within a bankruptcy case. It is an action commenced by a plaintiff filing a complaint against one or more defendants. The adversary proceeding resembles a typical civil case from state court. The plaintiff is the person, partnership or corporation initiating the lawsuit. Two of the most common adversary proceedings are a complaint to determine the dischargeability of a debt under Title 11 United States Code (“U.S.C.”) Section 523[c] and a complaint to deny the Debtor a discharge under Title 11 U.S.C. Section 727. A complaint to determine the dischargeability of a debt is generally but by no means always, filed for one of two reasons; the debt is based on fraud or false representations, or the debt is based on a willful or malicious injury to another. The deadline to file a complaint to determine the dischargeability of a debt under Title 11 U.S.C. Section 523[c] is no later than sixty (60) days after the date first set for the meeting of creditors. See Federal Rule of Bankruptcy Procedure 4007[c] (“FRBP”). If the complaint is not timely filed it is barred unless a request for extension of time is granted by the bankruptcy court before the deadline. A complaint to deny the Debtor a discharge is not as common as it requests that the bankruptcy court deny the Debtor a discharge, if the request is granted the Debtor is denied a discharge and all of the debts listed on the bankruptcy petition are then declared non-dischargeable. This complaint is generally used when a creditor cannot file a complaint to determine the dischargeability of a debt because the debt is not based on any of the reasons specified in Title 11 U.S.C. Section 523. The deadline to file a complaint to deny the Debtor a discharge under Title 11 U.S.C. Section 727 is also no later than sixty (60) days after the date first set for the meeting of creditors. See FRBP 4004(a). If the complaint is not timely filed it is barred unless a request for extension of time is granted by the bankruptcy court before the deadline. Once the summons and complaint are filed they must be served on the defendant(s) within 120 days from the date the complaint was filed or the case will be subject to dismissal. See Federal Rules of Civil Procedure 4(m). The defendant(s) must answer the complaint within thirty (30) days after issuance of the summons unless a different date is specified by the court. See FRBP 7012(a). If the defendant(s) do not answer the complaint by the date set forth in the summons they are in default. The Plaintiff can then obtain a default judgment for the relief requested in the complaint. If the defendant(s) do answer the complaint then discovery is permitted pursuant to the Federal Rules of Civil Procedure. The Bankruptcy Rules specifically allow the same type of discovery in

adversary proceedings as in a civil case so written interrogatories, requests for admission, and requests for production of documents may all be used in addition to depositions. If you enjoy this newsletter, tell others about it. They can subscribe by visiting the following link: http://www.legaldocspro.net/newsletter.htm Have a great week and thanks for being a subscriber. Yours Truly, Stan Burman The author of this newsletter, Stan Burman, is a freelance paralegal who has worked in California litigation since 1995. Any persons representing themselves should be aware that the author does NOT work directly with the public. The author's website: http://www.legaldocspro.net THE AUTHOR NOW SELLS SAMPLE CALIFORNIA LEGAL DOCUMENT COLLECTIONS AT A HUGE DISCOUNT. CLICK BELOW TO VIEW THE DOCUMENT COLLECTIONS, AS WELL AS NUMEROUS INDIVIDUAL SAMPLE DOCUMENTS SOLD BY THE AUTHOR: http://www.scribd.com/legaldocspro Copyright 2012 Stan Burman. All rights reserved. DISCLAIMER: Please note that the author of this newsletter, Stan Burman is NOT an attorney and as such is unable to provide any specific legal advice. The author is NOT engaged in providing any legal, financial, or other professional services, and any information contained in this newsletter is NOT intended to constitute legal advice. These materials and information contained in this newsletter have been prepared by Stan Burman for informational purposes only and are not legal advice. Transmission of the information contained in this newsletter is not intended to create, and receipt does not constitute, any business relationship between the sender and receiver. Subscribers and any other readers should not act upon this information without seeking professional counsel.