New York attorney Norman Kinel is a partner at Squire Patton Boggs LLP. Before joining this firm, Mr. Kinel worked as an associate at Cadwalader, Wickersham & Taft and later was a partner at Whitman Breed Abbott & Morgan; Sidley Austin; and Lowenstein Sandler. In his current position, Norman Kinel is a member of his firm’s restructuring and insolvency practice, is head of the firm's creditors' committee practice and represents numerous clients in bankruptcy cases nationwide.
Many times bankruptcy attorneys are approached by creditors who want to claim debts or enforce judgments against debtors. These creditors are often frustrated and eager to commence involuntary bankruptcy proceedings to force the debtor into bankruptcy. However, bankruptcy courts have shown reluctance to be treated as collection agencies.
In the case of In re Mathew M. Murray, the creditor, a law firm, wanted to enforce a $19 million judgment against the debtor, Murray, by initiating involuntary bankruptcy proceedings. The law firm sought an order for the sale of real property that the debtor held jointly with his wife.
While the petition did meet the minimum filing requirements, the bankruptcy court ruled that the case was commenced in bad faith to either enhance its rights against the debtor or obtain leverage in negotiations. The court held that courts are not to be misused as collection agencies, and bankruptcy proceedings are not judgment enforcement tools.
