What are bankruptcy and insolvency disputes?
Bankruptcy and insolvency disputes are legal disputes that arise when a person or company is unable to meet their debt payments and enters a judicial or administrative insolvency process. In these cases, debtors, creditors, and other stakeholders may face off in court to determine how available assets are managed, how obligations are restructured or liquidated, and which rights prevail among the different parties.
At Loopa, we finance litigation and claims related to bankruptcy, insolvency, or corporate restructuring processes, where creditors face difficulties in recovering what is rightfully theirs and must make quick decisions to protect their position.
These scenarios are inherently complex: they combine legal uncertainty, financial pressure, multiple interested parties, and a legal environment where the window of opportunity to act strategically can close within weeks.
Insolvency proceedings often involve not only the review and verification of credits, but also:
Challenging suspicious maneuvers
Pursuing assets removed from the debtor's estate
Nullifying fraudulent disposal acts
Holding administrators, partners, or benefiting third parties directly responsible
In many cases, creditors must litigate within the insolvency process itself or initiate parallel actions to maximize their recovery. This task, in addition to requiring specialized legal expertise, demands significant financial resources that are not always available.
At Loopa, we offer financing for this type of litigation with the aim of leveling the playing field and enabling strategic creditors to assert their rights firmly.
We provide capital to cover legal expenses, asset investigations, accounting reports, and all the necessary infrastructure to carry out actions within or outside the insolvency process. We can also advance funds against the estimated value of the credit, allowing for cash flow before the insolvency process concludes, which can take years in many jurisdictions. This advance can be especially useful for companies in need of immediate liquidity without waiting for an uncertain and distant recovery.
Our non-recourse financing model means that if the credit is ultimately not recovered or the process is unsuccessful, the client is not obligated to repay the investment. This structure reduces financial risk and enables our clients to act decisively, without being constrained by lack of liquidity or the inherent uncertainty of the process. In many cases, financing allows for a more active and prioritized position within the insolvency process, increasing the chances of recovery or improving the conditions of a potential restructuring.
We finance disputes within bankruptcy or insolvency processes that have economic relevance, solid legal merit, and a clear action plan. We intervene in jurisdictions where there are formal mechanisms for credit verification, corporate reorganization processes, or liquidation regimes, whether judicial or extrajudicial. We also finance avoidance actions, administrator liability, executions against guarantors or related third parties, and claims for asset stripping or insolvency fraud.
Our financing is aimed at creditor companies, investment funds, insurers, banks, strategic suppliers, or legal firms representing these stakeholders and seeking a financial solution to advance in complex litigation within the insolvency context. We also collaborate with those who have acquired unpaid credits with the goal of litigating them and need capital to execute their strategy.
In a scenario where bankruptcy and insolvency processes have become more frequent and sophisticated, having financial support can make the difference between accepting a loss or activating real recovery mechanisms. At Loopa, we finance this type of litigation with a strategic vision, allowing our clients to intervene forcefully in processes that demand legal precision, economic capacity, and quick reaction.
If you are facing litigation within an insolvency process, or have a credit affected by the insolvency of a third party, we can help finance its recovery.