Bankruptcy Litigation and Avoidance Action Defense

Strategic Representation in Bankruptcy-Related Disputes

Bankruptcy proceedings often give rise to complex litigation. Whether defending against avoidance actions or litigating priority disputes, bankruptcy litigation requires a deep understanding of the Bankruptcy Code, procedural rules, and federal court practice.

Bean, Kinney & Korman represents interested, non-debtor parties in bankruptcy-related litigation throughout the Virginia, Washington, D.C. and Maryland region. We handle adversary proceedings, contested matters, and related disputes in U.S. Bankruptcy Courts and associated federal forums.

Our approach combines technical statutory analysis with practical litigation strategy — protecting financial interests while managing risk exposure in high-stakes insolvency matters.

Bankruptcy Litigation Services

Preference Action Defense (11 U.S.C. § 547)

Defense against trustee preference claims
Ordinary course of business defense
New value defense strategy
Contemporaneous exchange analysis
Settlement negotiation

Preference actions frequently target vendors and creditors who received payments before bankruptcy filing.

Fraudulent Transfer Litigation (11 U.S.C. § 548 & State Law)

Defense of constructive fraud claims
Actual intent allegations
Reasonably equivalent value analysis
Good faith defenses
Asset transfer litigation

Fraudulent transfer claims often involve complex financial and transactional review.

Automatic Stay & Relief from Stay Motions

Motions for relief from the automatic stay
Enforcement of secured creditor rights
Stay violation defense
Collateral protection strategy

Understanding the limits of the automatic stay is critical to protecting creditor interests.

Objections to Claims & Priority Disputes

Claim allowance litigation
Secured vs. unsecured priority disputes
Subordination challenges
Lien validity and perfection issues

Priority analysis often determines recovery outcomes.

Plan Confirmation & Discharge Litigation

Objections to plan confirmation
Feasibility and good faith challenges
Discharge objections
Bankruptcy fraud-related litigation

We represent stakeholders at every stage of the plan process.

Bankruptcy litigation often intersects with broader business disputes.

Who We Represent

Our Bankruptcy Litigation practice represents:

Secured and unsecured creditors
Commercial lenders and financial institutions
Trade vendors and suppliers
Commercial landlords
Government contractors
Corporate officers and directors
Trustees and fiduciaries
Businesses named in avoidance actions

We tailor defense strategy to minimize financial exposure and preserve recovery rights.

Bankruptcy Litigation & Avoidance Action FAQs

What is a preference action?

A preference action seeks to recover payments made by a debtor to a creditor within a specific period before bankruptcy filing. Trustees may attempt to claw back these payments to redistribute funds among creditors.

What is a fraudulent transfer?

A fraudulent transfer claim alleges that assets were transferred for less than reasonably equivalent value or with intent to hinder creditors. Both federal and state law may apply.

What defenses are available in avoidance actions?

Common defenses include the ordinary course of business defense, new value defense, contemporaneous exchange defense, and good faith purchaser protections, depending on the claim type.

Can creditors continue collection efforts after a bankruptcy filing?

Generally, no. The automatic stay halts collection activity. Creditors may seek relief from the stay through court motion to protect collateral or enforce rights.