Creditors' Rights

Civil Litigation

When bankruptcy proceedings give rise to litigation, Zuckerman Spaeder LLP’s nationally recognized attorneys represent creditors’ committees, litigation trusts, post-confirmation trusts, unsecured creditors, bankruptcy trustees, secured creditors, and other stakeholders in cases across the country. We regularly act as conflicts counsel or special litigation counsel in bringing claims against major financial institutions to enhance creditors’ recoveries. Whatever the circumstances, our attorneys offer their clients the strategic approach necessary to navigate the complex problems that arise when bankruptcy and litigation intersect.

Zuckerman Spaeder’s Creditors’ Rights Practice draws from the strengths of the firm’s Civil Litigation and Bankruptcy Practices, with our attorneys bringing extensive expertise to this high-stakes, increasingly sophisticated area of law. Seven of our attorneys have been recognized for bet-the-company litigation in The Best Lawyers in America, and in 2010, U.S. News and World Report ranked the firm in the top tier nationally for commercial litigation, among other individual and firmwide rankings. Our bankruptcy attorneys have similarly been honored by publications such as U.S. News and World Report, Chambers USA, and The Best Lawyers in America.

Experience Highlights

Often, creditors’ claims are not satisfied during the course of bankruptcy proceedings. When that happens, litigation—whether in the form of adversary proceedings in the bankruptcy court or actions in state or federal courts—may be the most effective tool to vindicate creditors’ rights. Our attorneys take a solution-oriented approach designed to maximize returns and recoveries for their clients, yet minimize the disruption caused by litigation so that clients can focus on their businesses and lives.

Our attorneys are prepared to implement the multi-track strategies so often necessary to obtain timely and favorable resolution for our clients in complex disputes. To gain a leg up in negotiations and litigation, we make effective use of all tools available, including Bankruptcy Rule 2004, to investigate matters before litigation starts.  Where litigation is necessary, we bring cases in advantageous forums and prosecute them vigorously, while continuing negotiations with other stakeholders to achieve a positive and mutually agreeable outcome. Our experience in restructuring and reorganization makes us particularly effective in advising clients when creativity is necessary to enhance creditor returns. The firm’s experience bringing and defending civil and criminal fraud cases of all stripes is also an asset in litigating fraudulent conveyance, equitable subordination, veil piercing, and related claims with the objective of increasing the assets available for payment of creditors’ claims.