Disputes that begin with the automatic stay
The filing generally stops lawsuits, collection efforts, and termination steps against the debtor at once, even if you were close to a judgment. Acting against the debtor or its property after the filing can violate the stay and expose you to sanctions, so get advice before sending notices or setting off accounts. If the stay is harming you, for example because collateral is losing value or a non-bankruptcy lawsuit is better heard elsewhere, you can ask the court for relief from the stay. Much business bankruptcy litigation begins with that kind of motion.
Your contract in the debtor's hands
A debtor can usually decide whether to keep or reject a contract or lease that is still being performed, and clauses that end the agreement because of a bankruptcy filing are generally not enforceable against it. If the debtor keeps the contract, it typically has to cure past defaults and show it can perform going forward, and the cure amount is often disputed. If the debtor rejects it, you hold a claim for damages, which is commonly paid at a fraction alongside other unsecured claims. Commercial landlords have specific rules about timing and about rent after the filing, and some contracts, including certain intellectual property licenses, follow rules of their own. Preserve the contract, the amendments, the account history, and correspondence about performance and defaults.
Picking which fights matter
Not every dispute in a counterparty's bankruptcy is worth litigating. We look at what you are owed, whether you are still performing or supplying, whether you hold collateral or a right of setoff, and whether objections to cure amounts, sale orders, or plan terms would protect real value. Deadlines to object are often set by notices that arrive in large volumes, so someone needs to read them as they come in. In a first conversation we sort out your position, what the next notice or hearing will decide, and where your leverage actually lies.
