Bankruptcy mediation is defined as a structured negotiation in which a neutral third-party mediator facilitates discussions between debtors, creditors, trustees, insurance representatives, other interested parties and legal counsel to reach a mutually agreeable resolution to a dispute, which is called a settlement agreement. Unlike litigation, mediation fosters open communication and collaboration, helping parties find solutions that address legal, financial and emotional concerns, and their settlement agreement is enforceable in court, acting as a contract.

Our panel of retired judges and seasoned attorneys have settled numerous bankruptcy disputes throughout the multiple decades that ADR Systems has been in business. Most notably, Hon. Stuart A. Nudelman, (Ret.), senior mediator and arbitrator at ADR Systems, conducted a multi-day remote mediation with over 40 participants to settle a bankruptcy dispute involving claims of fraud and breach of fiduciary duty, as well as a bankruptcy trustee who oversaw the liquidation of numerous assets related to the dispute.

Parties to a bankruptcy dispute enjoy various advantages when they mediate it at ADR Systems.

Faster Resolutions: Mediation can resolve disputes in weeks or months rather than years, reducing the time burden on plaintiffs and defendants

Cost Savings: Avoiding lengthy court battles saves money otherwise spent on legal fees, expert witness costs and administrative expenses.

Confidentiality: Unlike public court proceedings, mediation is confidential, protecting reputations and sensitive information.

Reduced Stress: Mediation fosters a collaborative rather than adversarial atmosphere, reducing emotional strain for all involved.

Greater Control: Mediation removes the uncertainty and risk associated with litigation, where outcomes can be all-or-nothing; both parties have a say in the outcome of the case rather than leaving the decision in the hands of a judge or jury.

Preserved Relationships: Open dialogue allows debtors, creditors and trustees to dialogue civilly and constructively in a collaborative environment

Experienced Neutrals: ADR Systems’ panel of mediators consists of retired judges and seasoned attorneys with decades of hands-on knowledge of the disputes before them and an ardent passion for resolving them.

Mediation is a practical solution for many bankruptcy disputes. It is particularly beneficial when parties seek a resolution that prioritizes confidentiality, expediency and cost-effectiveness.

If you are representing clients involved in a bankruptcy dispute and want to pursue mediation as an alternative to litigation, explore our Find A Neutral page to review the bios of mediators with experience mediating bankruptcy disputes.

Submit your bankruptcy case through our Neutral Availability Form or Contact Form.