Bankruptcy

When a member files bankruptcy, recovery strategy changes immediately.

The automatic stay halts collection activity. Secured interests must be reviewed. Deadlines begin running. Internal teams need clear answers about exposure, collateral, and next steps.

For credit union leadership, bankruptcy affects more than a single loan. It influences portfolio performance, reporting, and long-term recovery planning.

We represent financial institutions and other creditors in bankruptcy cases throughout Florida and Georgia. When matters arise outside these states, we frequently work with trusted local counsel to represent our clients in bankruptcy courts across the United States.

Chapter 7 and Chapter 13 Bankruptcy Matters

We handle routine creditor services such as:

• Filing proofs of claim
• Preparing and negotiating reaffirmation agreements
• Motions for relief from stay
• Objecting to Chapter 13 plans

These filings must be accurate and timely. Proper positioning at this stage can significantly affect recovery.

Chapter 11 and Chapter 12 Proceedings

Commercial reorganizations require additional strategic analysis. We represent creditors in Chapter 11 and Chapter 12 matters, including plan review, collateral protection, and participation in restructuring discussions.

Our attorneys have represented clients in significant Chapter 11 proceedings, including cases involving Yellow Corp., Toys R Us, Sears, Winn-Dixie, Alliance Leasing Corporation, and Centrix Financial, LLC. Experience in complex matters informs how we evaluate risk and recovery even in smaller cases.

Non-Routine and Contested Bankruptcy Matters

Bankruptcy litigation sometimes extends beyond standard filings. We represent clients in:

• Non-dischargeability actions involving debtor fraud
• Defense of automatic stay violation claims
• Objections to Chapter 11 reorganization plans
• Adversary proceedings within bankruptcy court

These matters require precision and disciplined strategy.

A Cost-Conscious and Practical Approach to Bankruptcy Representation

Bankruptcy proceedings can generate unnecessary legal expense if not handled carefully.

Our focus is to limit losses and maximize recoveries while avoiding motions or actions that increase cost without improving outcome. We assess whether litigation is warranted before recommending escalation.

In many situations, we work with credit unions to train internal teams to manage routine bankruptcy matters in-house. This allows institutions to control legal spend while reserving outside counsel involvement for contested or complex issues.

We also advise credit unions on exercising cross-collateral clauses and their rights to deny or terminate membership when appropriate following a loss. Understanding and applying these rights properly can materially affect recovery.

Why Credit Unions Across Florida and Georgia Rely on Sorenson Van Leuven, PLLC

Bankruptcy law is federal, but courtroom practice and trustee expectations vary by jurisdiction.

Our attorneys regularly represent creditors in bankruptcy courts throughout Florida and Georgia and coordinate matters nationwide when needed. We understand how bankruptcy interacts with internal collections processes, collateral documentation, and institutional reporting obligations.

Equally important, we communicate clearly with executive leadership. Exposure is explained plainly. Options are outlined realistically. Deadlines are identified early. Our clients value that steadiness. 

Speak With Our Florida and Georgia Credit Union Bankruptcy Lawyers Today

If your credit union is managing routine bankruptcy filings, evaluating cross-collateral strategy, or facing contested bankruptcy litigation, early legal review can clarify available options.

Bankruptcy matters move quickly and involve strict procedural requirements. Structured assessment at the outset often protects collateral interests and reduces unnecessary expense.

We represent credit unions throughout Florida and Georgia and coordinate representation nationwide when needed. We welcome a brief introductory conversation to determine whether our team is the right fit for your institution.