Howard Ehrenberg Settles 10-Year-Old Dispute Between Chapter 7 Debtor and Debtor’s Wife

Howard Ehrenberg, Managing Member and trustee of the bankruptcy estate of Victor Paredes, settled a 10-year-old dispute between chapter 7 debtor Victor Paredes and his wife Evelina Paredes. The dispute, which began when the Paredes separated in 2004, involved Mrs. Paredes’ claim that $1,570,000 was due to her as a result of an alleged secretion of income generated by properties owned by the Paredes.  The dispute also related to the division of their properties.

Prior to mediation, Mrs. Paredes was granted relief from the automatic stay by the bankruptcy court so that she could reduce her claim to judgment in the Family Law Court.  The litigation of Mrs. Paredes’ claim became contentious and threatened to hold up the bankruptcy case for months, if not years.  In order to hasten the liquidation of Mrs. Paredes’ claim, Mr. Ehrenberg proposed that he serve as a pro bono mediator for the Paredes. The Paredes agreed to mediation.

Not only was Mr. Ehrenberg able to negotiate an agreement on Mrs. Paredes’ claim during mediation, which reduced the claim by $1,370,000, but Mr. Ehrenberg was also able to settle the dispute in the Family Law Court by negotiating a division of all of Mr. and Mrs. Paredes’ property.


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