Bankruptcy Litigation Adversary Proceedings

Debtor and Creditor Representation in Bankruptcy Litigation

When a company seeks bankruptcy protection, both the debtors and the creditors have rights. The debtor gets a court-protected reprieve from creditor actions through the automatic stay of Chapter 11. A creditor may challenge a bankruptcy filing if they believe the debtor is hiding assets or favoring some creditors at the expense of others.

Our attorneys at The Cooney Law Offices have extensive experience in adversary proceedings in U.S. Bankruptcy Court. They represent commercial debtors, creditors and lenders in Chapter 11 bankruptcy litigation in Allegheny County and western Pennsylvania.

Adversary Proceedings in Bankruptcy Court

If any aspect of a Chapter 11 bankruptcy reorganization or discharge is contested, the litigation is known as an adversary proceeding. The chief controversies involve:

  • Preference Actions: Debtors under bankruptcy protection may not repay favored creditors while stiffing others. This includes payments made to preferred creditors up to 90 days prior to the Chapter 11 filing. The other creditors can sue to “claw back” any preferential payments to be distributed among the whole class.
  • Fraudulent Transfers: Debtors cannot transfer, gift, or retitle business assets in an attempt to shield them from bankruptcy. Any such transfers are subject to clawback, and the debtor can be sanctioned by the court for bankruptcy fraud.
  • Dischargeability: Creditors can challenge the trustee’s discharge of specific debts if they believe the debtor is abusing the Bankruptcy Code.
  • Motion for Relief From Stay: Creditors can sue to lift the automatic stay to resume a commercial foreclosure or eviction that is underway, such as when the bankruptcy petition was not filed in good faith.

Ryan Cooney previously handled commercial bankruptcy for many years with the Robert O Lampl Law Office, including complex adversary proceedings. He is an accomplished litigator and an officer of the Bankruptcy and Commercial Law Section of the Allegheny Bar Association.

Experienced Protection of Your Rights

Our team has advocated for both debtors and creditors in adversary proceedings. For effective representation on either side of the equation, call The Cooney Law Offices at 412-546-1234 or email us.

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