Adversary proceeding – a lawsuit in a debtor’s case either brought by the Debtor or another party, such as a creditor or the Trustee. Certain relief requires the Debtor to file a separate lawsuit against a creditor or other party. This lawsuit is called an adversary proceeding. This case has a Plaintiff (whoever brings the suit) and a Defendant (whoever is being sued.)

Adversary proceedings are connected to Debtor’s bankruptcy case but filed as a separate proceeding. The most common adversary proceeding is where a creditor claims its debt is nondischargeable for various reasons: fraud, the type of debt.