About Part VII adversary proceedings
Bankruptcy Rule 7001 lists ten categories of disputes that must be brought as separate adversary proceedings rather than as motions in the main bankruptcy case. The list includes proceedings to recover money or property, to determine the validity, priority, or extent of a lien, to obtain approval for sales free and clear under section 363(h), to object to or revoke a discharge, to obtain an injunction, to determine the dischargeability of a particular debt, to determine the validity of a creditor's claim by a debtor, and to obtain a declaratory judgment on any of the foregoing.
An adversary proceeding is initiated by filing a complaint, served under Rule 7004, and proceeds through pleading, discovery, summary judgment, and trial in much the same manner as ordinary federal civil litigation. Part VII rules adopt Civil Rules 7 through 71 with modifications, supply specialized service rules, and shorten certain deadlines to align with the bankruptcy case schedule.
Each guide below treats one frequently-litigated adversary type. They survey the elements, defenses, common procedural traps, statute-of-limitations issues, and the interplay between the adversary record and the main bankruptcy case.
Adversary deep-dives
- Declaratory Judgment under Rule 7001(9)When and how to seek a declaratory judgment inside a bankruptcy case, including Article III standing concerns and the difference from a contested matter.
- Dischargeability Complaints under Section 523 and Rule 4007Filing deadlines, the section 523(a)(2)/(4)/(6) elements, burden of proof, and the consequences of missing the Rule 4007(c) deadline.
- Fraudulent Transfer Actions under Section 548Actual versus constructive fraud, the two-year reachback, integration with state-law UFTA/UVTA claims under section 544(b), and section 550 recovery from initial and subsequent transferees.
- Preference Actions under Sections 547 and 550The five elements of a preference, the ordinary-course, contemporaneous-exchange, and new-value defenses, insider preferences, and venue considerations.
- Section 727 Global Discharge DenialDenial of an individual Chapter 7 debtor's entire discharge, the section 727(a) grounds, the Rule 4004 deadline, and the strategic posture relative to a section 523 dischargeability complaint.