Whose Claim Is It, Anyway?

It is often assumed that only creditor claims against a debtor are affected by the debtor's bankruptcy filing, and that rights against third parties are not. While the logic and simplicity of that assumption are appealing, nothing could be further from the truth in many bankruptcy situations. There is an inherent tension between the claims that may be asserted by creditors against non-debtor parties and those that are in the exclusive realm of the trustee. Not only is this line-drawing an analytical challenge, its outcome may be entirely different depending upon the court involved and the law being applied. Understanding the courts' treatment of this division of claims (as inconsistent as it is) is essential to a successful litigation strategy, whether on behalf of individual creditors or a trustee.