Strategic Advocacy. Focused Recovery. Creditor-Centric Results.
When a borrower or debtor files for bankruptcy, lenders and creditors face immediate and substantial risks. Delays, automatic stays, and court-imposed restructuring can disrupt recovery efforts, impair lien rights, and diminish collateral value. At Neubert, Pepe & Monteith, P.C., we represent banks, financial institutions, and creditors in all aspects of bankruptcy litigation and creditor enforcement throughout Connecticut.
Our attorneys provide responsive, results-driven counsel to protect creditor interests and maximize recoveries in Chapter 7, Chapter 11, and Chapter 13 proceedings. We act swiftly to file claims, seek relief from the automatic stay, defend against preference and fraudulent transfer actions, and secure favorable treatment in reorganization plans. Whether representing secured or unsecured creditors, our clients rely on our litigation experience and commercial acumen to deliver practical, enforceable outcomes in a challenging legal environment.
Key Bankruptcy Services for Lenders and Creditors
Filing Proofs of Claim
Filing a proof of claim is a critical first step in protecting a creditor’s rights in bankruptcy proceedings. We prepare and file timely, well-supported claims that are substantiated by loan documents, payment histories, and legal fee calculations, ensuring proper recognition in the debtor’s schedules and full participation in the distribution process.
Example: A regional commercial lender retained our firm after a borrower filed for Chapter 11 bankruptcy protection. The loan was evidenced by a promissory note and secured by business assets, including equipment and accounts receivable. We promptly prepared and filed a comprehensive proof of claim on behalf of the lender, carefully documenting the outstanding principal, accrued interest, default charges, and recoverable legal fees, all supported by the loan documents and payment history. As a result, the creditor’s claim was fully recognized and afforded appropriate treatment under the debtor’s confirmed reorganization plan.
Motions for Relief from Automatic Stay
The automatic stay is a core protection of bankruptcy law that immediately halts all collection efforts against the debtor upon filing. While it provides breathing room for debtors, it can significantly impair the rights of secured creditors. We file and prosecute motions for relief from stay, enabling creditors to enforce security interests, repossess collateral, or resume state court litigation when warranted.
Example: Our firm represented a commercial finance company that was barred from reclaiming leased machinery due to a Chapter 13 bankruptcy filing. We successfully demonstrated the debtor’s payment default, failure to maintain required insurance, and lack of adequate protection for the creditor’s interest. The bankruptcy court granted our motion for relief from stay, authorizing immediate repossession of the equipment.
Objections to Discharge and Dischargeability
Bankruptcy does not automatically eliminate all debts, and certain obligations may be excluded from discharge when they arise from fraud, embezzlement, or willful misconduct. We evaluate the circumstances giving rise to the debt and, when warranted, initiate and prosecute adversary proceedings to prevent discharge. Our goal is to protect creditor rights by ensuring that debts incurred through misconduct are not wiped away in bankruptcy.
Example: Our firm represented a lender in a matter involving a borrower who fraudulently induced a line of credit by submitting falsified financial statements. Following the borrower’s Chapter 7 bankruptcy filing, we filed an adversary complaint under 11 U.S.C. § 523(a)(2), alleging false pretenses and material misrepresentations. The bankruptcy court entered judgment in our client’s favor, deeming the debt non-dischargeable and preserving the lender’s right to pursue post-bankruptcy collection.
Defense Against Preference and Fraudulent Transfer Claims
Creditors that receive payments or transfers prior to a bankruptcy filing may be targeted by trustees seeking to claw back funds as preferential or fraudulent transfers. We represent creditors in defending against these actions—asserting statutory defenses, commercial exceptions, and fact-based arguments to mitigate or eliminate potential liability and preserve legitimate pre-bankruptcy recoveries.
Example: Our firm represented a vendor that had received a series of payments in the months leading up to a customer’s Chapter 11 filing. The bankruptcy trustee filed an adversary proceeding under 11 U.S.C. § 547, seeking to recover the payments as preferential transfers. We established that the payments were made in the ordinary course of business and consistent with historical billing practices. The court agreed and dismissed the trustee’s claim in full, preserving our client’s recovery.
Dismissal or Conversion of Bankruptcy Cases
Bankruptcy protection is not absolute, and when the process is abused or mismanaged, creditors have meaningful remedies. We advocate for dismissal or conversion of bankruptcy cases when debtors file in bad faith, fail to meet statutory obligations, or otherwise misuse the process. By seeking timely dismissal or conversion, we protect creditor rights, reduce delay, and advance enforcement efforts.
Example: Our firm represented a lender in a matter involving a real estate developer who filed for Chapter 11 protection on the eve of a scheduled foreclosure. After filing, the debtor failed to maintain property insurance and did not submit required operating reports. We promptly filed a motion to dismiss the case for bad faith and statutory noncompliance. The bankruptcy court granted our motion, allowing the foreclosure action to proceed without further delay.
Chapter 11 Plan Review and Negotiation
Reorganization plans can significantly impact creditor rights and recovery. We review proposed Chapter 11 plans to ensure compliance with the Bankruptcy Code and alignment with our clients’ financial interests. When necessary, we file objections to unreasonable or noncompliant provisions and negotiate plan modifications that improve creditor treatment and maximize recoveries for impaired claimholders.
Example: Our firm represented a secured creditor in a Chapter 11 case where the debtor proposed a reorganization plan with below-market interest and a balloon payment structure. We filed an objection to the proposed treatment and engaged in plan negotiations. As a result, we secured improved terms for our client, including market-rate interest, monthly amortization, and default protections—preserving the loan’s value over the life of the plan.
Reaffirmation Agreements and Loan Workouts
In consumer bankruptcy cases, creditors can preserve collateral value and maintain payment streams through reaffirmation agreements or negotiated workouts. We facilitate these arrangements in appropriate cases, enabling debtors to retain key assets while protecting our clients’ liens, cash flow, and long-term recovery prospects.
Example: Our firm represented a lender in a Chapter 7 case where the debtor sought to retain a financed vehicle. We prepared and filed a reaffirmation agreement with modified terms that preserved the lender’s lien, avoided repossession costs, and ensured continued repayment under a restructured arrangement acceptable to both parties.
Trusted Counsel for Creditor Bankruptcy Matters
At Neubert, Pepe & Monteith, P.C., we understand that bankruptcy litigation is complex, time-sensitive, and often high-stakes for creditors. Our Bankruptcy and Creditors’ Rights attorneys deliver experienced, responsive, and commercially focused representation tailored to the unique risks and opportunities creditors face in bankruptcy court. We don’t just defend claims; we enforce rights, preserve value, and drive results at every stage of the process, from petition to discharge.