Adversary Proceeding

A lawsuit arising in or related to a bankruptcy case that begins by filing a complaint with the court, that is, a "trial" that takes place within the context of a bankruptcy case

Additional Sources

Answers.com

Any action, hearing, investigation, inquest, or inquiry brought by one party against another in which the party seeking relief has given legal notice to and provided the other party with an opportunity to contest the claims that have been made against him or her.

The Free (Legal) Dictionary

Any action, hearing, investigation, inquest, or inquiry brought by one party against another in which the party seeking relief has given legal notice to and provided the other party with an opportunity to contest the claims that have been made against him or her. A court trial is a typical example of an adversary proceeding.

Wikipedia

An Adversary proceeding in bankruptcy, is a lawsuit in the American legal system filed by a party called a "plaintiff" against a party called a "defendant".

Adversary proceedings are governed by certain court rules found in Part VII of the Federal Rules of Bankruptcy Procedure and, in part, by the Federal Rules of Civil Procedure. A bankruptcy "case" may contain one or more adversary proceedings (or none at all).

Adversary proceedings are initiated by filing a pleading document called a "complaint" with the court to resolve both federal and state law issues.

Adversary proceedings may be filed by the bankruptcy trustee or by other parties. For example, a creditor may file an adversary proceeding to object to the debtor's discharge. Or, a debtor may commence an adversary proceeding against a creditor as a response to a violation of the automatic stay. See generally Rule 7001(4) of the Federal Rules of Bankruptcy Procedure.

An adversary proceeding is more formal than a contested matter. A contested matter in bankruptcy is governed by Rule 9014 of the Federal Rules of Bankruptcy Procedure.

Student loans can be discharged through bankruptcy by use of the adversary proceeding.