ADVERSARY PROCEEDING

glossary /

ADVERSARY PROCEEDING

adversary proceeding.

1. A hearing involving a dispute between opposing parties (Judge Adams presided over the adversary proceeding between the landlord and tenant).

2. Bankruptcy. A lawsuit that is brought within a bankruptcy proceeding, governed by special procedural rules, and based on conflicting claims usu. between the debtor (or the trustee) and a creditor or other interested party (the Chapter 7 trustee filed an adversary proceeding against the party who received $100,000 from the debtor one week before the bankruptcy filing). [Cases: Bankruptcy 2156. C.J.S. Bankruptcy ¡ì 26.]

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