Bankruptcy is essentially a statutory framework through which state and federal substantive law may be processed when one or more of the parties is insolvent. Most Bankruptcy Code provisions are procedural in nature. The main exception to this rule is in the area of avoidance actions, which are primarily substantive and mostly unique to bankruptcy. 

    "Strong Arm" Powers. The Bankruptcy Code empowers trustees to challenge liens and transfers granted by a debtor under hypothetical lien and judgment creditor rights. We are intimately familiar with the legal and strategic concepts involved in prosecuting and defending strong-arm litigation, and have handled these suits both on behalf of trustees and defensively on behalf of secured parties and purchasers of debtor assets. 

    Fraudulent Transfers. Not all "fraud" is sinful in the bankruptcy sense. A morally untainted person may still be the subject of a "fraudulent transfer" suit if he or she received debtor property in the year preceding bankruptcy, while the debtor was insolvent, for which "less than reasonably equivalent value" was paid. In addition to having handled the prosecution and defense of a substantial number of fraudulent transfer suits, we also have experience in structuring liens and transfers in the fashion most likely to avoid a fraudulent transfer attack in the event of a subsequent bankruptcy. 

    Preferences. One of the most frustrating experiences for any creditor of a bankrupt party is to be sued for preference recovery, particularly on accounts for which the creditor did not receive full payment. Preferences are unique to bankruptcy. They are essentially a tool by which trustees are empowered to recapture lawful payments under a notion that the creditor received more than his or her fair share as compared to other creditors. As subjective as this "fairness" notion is in concept, the functional reality is that preference suits are highly technical and turn on mostly objective criteria. We have comprehensive experience in all aspects of defending preference suits, and have routinely negotiated settlements for a fraction of the amount sought by the trustee. 

    Miscellaneous Avoidance Actions In addition to the "big three" discussed above -- strong-arm suits, fraudulent transfers and preferences -- we also have experience in handling the less common avoidance attacks, including turn over proceedings, statutory lien challenges, prosecution and defense of landlord's liens, postpetition transfers and disputes regarding after-acquired property