Creditor Rights and Bankruptcy
Bankruptcy lawyers aren’t just for bankruptcy. Our bankruptcy team specializes in third-party bankruptcy matters. The consequences of a bankruptcy or potential bankruptcy of a contract counterparty, borrower, lender, business partner, supplier, or other third party can be set in motion well before the case is ever filed. We offer proactive, bottom-line-focused advice to help clients create and preserve their rights and options should the other party enter bankruptcy or pursue other similar remedies. Besides handling bankruptcy litigation, we also counsel as to the enforceability and impact of contractual provisions regarding bankruptcy as they may appear in, for example, settlement agreements, corporate governance documents, loan agreements, leases, guaranties, franchise agreements, and non-compete agreements.
Bankruptcy Litigation. One of the biggest mistakes business owners make is delaying action when faced with a bankruptcy-related matter because they do not know what to do. Many deadlines in bankruptcy are short and require quick action, or else rights may be forfeited. For example, sometimes quick action can extract the creditor from a case sooner rather than later. Occasionally, notice of bankruptcy triggers an affirmative duty to return property previously garnished or repossessed. Our attorneys have the experience and judgment to assess the situation and lay out options that are appropriate in light of the potential consequences to the client’s bottom line. Our full menu of bankruptcy litigation services includes:
- Avoidance actions
- Preference actions
- Discharge and dischargeability actions
- Subordination actions
- Involuntary bankruptcy petitions
- Plan confirmation objections
- Proposed asset sales
- Compromises and proposed settlements
- Stay relief motions
- Proof of claim allowance matters
Recent examples of litigation success from our bankruptcy team include:
- A case in which our client, a lender in a cross-border financing structure, became embroiled in a complex state-court dispute between its borrower and a third party. We were able to successfully move the litigation to bankruptcy court, where we negotiated a successful and final settlement of all claims.
- Discharge and dischargeability litigation in which the client was alleged to have failed to report accurately his financial condition to the bankruptcy court. The result ultimately produced a payout to the client on a loan once considered uncollectable.
- A complex Chapter 11 case in which we successfully negotiated settlements and fended off claims seeking to recover previously paid compensation related to stock loan programs and other types of deferred compensation plans for several officers and directors.