Adversary proceedings are litigated matters within a bankruptcy case. They are not common, but can arise in certain special circumstances. They are serious matters that deserve your attention. Some of these situations will be discussed in this post.
When a bankruptcy case is filed, all of the creditors receive notice of the filing. By law they are provided with a opportunity to file a complaint objecting to the discharge of a debt, or the discharge of the entire case. A creditor can object to the discharge of its debt if it believes the debt was incurred in certain fraudulent circumstances (fraud, malice, defalcation in a fiduciary capacity, and a few other rare scenarios.).