A bankruptcy adversary proceeding is actually a separate lawsuit that has been filed within the bankruptcy case. This starts like any other lawsuit when someone files a complaint. This someone can be you, the creditor or the bankruptcy trustee.
There are quite a few bankruptcy cases that go through both completion and discharge without any adversary proceedings. However, this might not be the case with others.
This adversary proceeding might be brought forth to challenge the dischargeability of the particular debt with the allegation that you incurred it through fraud. It might also be so that the trustee seeks to regain a particular property that you sold or transferred to someone else prior to bankruptcy. You also have the right to bring on an adversary proceeding.
There are certain primary reasons due to which an adversary proceeding essentially takes place. Some of them are as follows –