What is Bankruptcy Litigation?
Litigation is the term the legal system uses for the process of settling disputes between parties. It’s the process of taking legal action (lawsuits). While most consumer bankruptcy cases do not really involve any actual litigation, there can be a lot to fight over in a bankruptcy case. The possibility of litigation is what can often guide the parties and the process in resolving disputes, without having to have any formal litigation.
Bankruptcy Litigation Categories
An adversary proceeding is basically a lawsuit within the core bankruptcy case that follows rules of procedure substantially similar to the Federal Rules of Civil Procedure.
Contested matters are other litigation that occur within the bankruptcy case but are treated less formally than adversary proceedings.