Mediation
Bankruptcy & commercial mediation
Mediation resolves disputes faster and at lower cost than litigation. Max Tarbox brings decades of insolvency experience and formal ODR training to every mediation.
Overview
Why mediate?
Bankruptcy and commercial litigation is slow, expensive, and uncertain. A trial calendar can stretch a dispute over years, and the outcome — once a judge or jury decides — is rarely what either side hoped for. Mediation lets the parties shape their own resolution with a neutral facilitator who understands the law, the leverage points, and the practical realities of insolvency.
The right mediator can move a case from entrenched positions to a workable deal in a single day. The wrong one — or none at all — can cost both sides far more than the underlying dispute is worth.
01
Confidential
Discussions stay private and non-discoverable.
02
Faster
Most disputes resolve in one to three sessions.
03
Party-Driven
Outcome shaped by you, not imposed by the court.
Best Fits
Disputes well-suited to mediation
Mediation is most effective where the parties have shared incentives to avoid trial, where business or personal relationships will continue, or where the cost of litigation would consume the disputed amount. Common engagements include:
01
Preference & fraudulent transfer claims
Trustee or debtor-in-possession claw-back claims where exposure and defenses can be evaluated quickly.
02
Plan confirmation objections
Resolving creditor objections, valuation fights, and class treatment disputes before contested confirmation.
03
Partner & shareholder disputes
Closely-held business deadlocks, buy-out valuations, and exit negotiations.
04
Commercial contract disputes
Lease, supply, and service-contract disagreements where ongoing relationships matter.
05
Lender & guarantor workouts
Forbearance, restructuring, and guarantor-liability negotiations short of foreclosure or suit.
06
Multi-party creditor disputes
Allocating recoveries, intercreditor priorities, and committee-level negotiations.
Side-by-Side
Mediation vs. litigation
Both paths can resolve a dispute. The difference is who controls the outcome, how long it takes, what it costs, and what happens to the relationships involved.
Comparison Chart
Mediation vs. Litigation
| Feature | Our FocusMediation | Litigation |
|---|---|---|
| Privacy | Confidential, non-discoverable | Public record |
| Timeline | Days to a few weeks | Months to years |
| Cost | Lower — split mediator fee | High legal fees and expert costs |
| Decision-maker | The parties themselves | Judge or jury |
| Outcome flexibility | Tailored business solutions | Limited to legal remedies |
| Effect on relationship | Often preserved | Frequently destroyed |
| Appeal risk | None — settlement is final | Years of additional appeals |
| Best for | Negotiable, ongoing disputes | Pure questions of law or principle |
Mediation does not foreclose litigation — if talks fail, the parties keep every right they walked in with. But a successful mediation can end a dispute in a single day at a fraction of the cost.
ODR-Trained Neutral
A neutral who understands both sides of the table.
Two decades representing debtors, creditors, trustees, and committees — and the judgment to know when settlement beats trial.
How It Works
The mediation process — from engagement to settlement
Every mediation is shaped by the dispute, but most engagements move through the same five core stages. Here is what to expect from initial engagement through a signed settlement.
- Step 01
Engagement
The parties agree on the mediator, scheduling, fee allocation, and ground rules. A written mediation agreement governs confidentiality and the scope of the session.
- Step 02
Pre-mediation submissions
Each side submits a confidential position statement and key documents to the mediator. This is where the mediator learns the strengths, weaknesses, and real interests of each party.
- Step 03
Joint session
All parties and counsel convene. Each side presents its perspective directly to the others — often the first time the decision-makers hear the dispute framed by the other party rather than through pleadings.
- Step 04
Caucuses
The mediator shuttles between private rooms, testing positions, narrowing gaps, and translating offers. This is where most movement happens — privately, candidly, and outside the record.
- Step 05
Settlement & documentation
When the parties reach terms, they are reduced to a written, binding settlement on the spot. Final long-form documents follow, but the deal is locked in before anyone leaves the room.
Most bankruptcy mediations resolve in a single full-day session. More complex multi-party disputes may require a second sitting once additional information is exchanged.
Credentials
Why Max Tarbox as your mediator
State Bar of Texas 40-hour ODR-trained mediator
Max Tarbox completed the State Bar of Texas 40-hour Online Dispute Resolution mediator training and brings 20+ years of bankruptcy and commercial insolvency practice to each engagement — having sat on every side of these disputes as debtor's counsel, creditor's counsel, trustee, and court-appointed receiver.
Mediation FAQ
Frequently asked questions about mediation
Straight answers to the questions parties most often ask before agreeing to mediate a bankruptcy or commercial dispute.