Bankruptcy Litigation
Bankruptcy Litigation
Bankruptcy litigation encompasses a wide variety of disputes that arise in a bankruptcy proceeding. Because of the fluid nature of a bankruptcy case, the pace of litigation in a bankruptcy court is faster than in other civil matters.
Matt has 20 years of experience in representing Chapter 11 Trustees, lenders and institutional creditors, individual creditors, and debtors in bankruptcy cases.
When faced a dispute in the bankruptcy court, it is important to choose a skilled lawyer to protect your rights.
Matt Grimshaw has extensive experience in handling bankruptcy litigation matters. Book a consultation call with him to discuss your best course of action.
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Frequently Asked Questions
please read our frequently asked questions to learn more about what to do next.
What is a Cash Collateral Dispute?
After a bankruptcy case is filed, a debtor cannot use cash or cash equivalents that are subject to a lien without court authorization. To obtain authorization, a debtor must “adequately protect” the creditor against the risk that the value of the collateral will diminish by the use.
What is a Claim Objection?
A creditor may file a proof of claim against a debtor that explains the basis and amount of the obligation owed. If a proof of claim is properly filed, then it is presumed valid. Other parties can challenge a proof of claim by presenting evidence concerning the validity of the debt. Ultimately, the claimant must persuade the court that it has a valid claim.
What Are Dischargeability Actions?
Typically, in an individual’s case, the debtor obtains a court order discharging their debt. In certain circumstances, a debt may not be dischargeable. For example, a debt involving fraud may not be discharged if the creditor obtains a bankruptcy court order confirming that the debt is non-dischargeable.
What Are Fraudulent Transfer Actions?
A bankruptcy trustee can recover a transfer made by a debtor during the four years before the bankruptcy case was filed if the trustee shows the transfer was made:
(1) with the intent to “hinder, delay, or defraud” a creditor
(2) while the debtor was insolvent and the debtor did not receive reasonably equivalent value in exchange for the transfer.
Creditors have certain defenses available to them, including good faith.
What Are Lien-priority Disputes?
If a debtor offers the same property to multiple creditors as collateral, disputes can arise regarding the priority of the creditor’s liens. The senior lien is the most valuable.
What Are Lien-stripping Disputes?
In certain circumstances, a debtor can force a creditor to release a lien against the debtor property. To do so, the debtor must show, among other things, that the property is “under water” (or that the value of the creditor’s lien and senior liens against the property exceed its value). If the property is not “under water,” then liens will remain.
What Are Objections to Plan?
Creditors can challenge aspects of a debtor’s plan or reorganization and argue that changes are required. For example, a creditor can argue that a plan is not feasible if the debtor lacks the ability to make the proposed payments or that a plan unfairly allows a debtor to retain assets if creditors are not paid in full.
What Are Preference Actions?
A bankruptcy trustee can recover payments by a debtor during the 90-day period before the case was commenced. Creditors have defenses to a trustee’s claim to recover money, including the ordinary course of business defense, the new value defense, and the contemporaneous exchange for value defense.