Filing Alert: Nussbaum Lowinger Chapter 11

Update (Apr. 16, 2026): A comprehensive case summary is now available for the Chapter 11 bankruptcy filing of Nussbaum Lowinger LLP.

Nussbaum Lowinger LLP and its debtor affiliate⁽¹⁾, a Suffern, NY-based real estate law firm, filed for Chapter 11 protection on Apr. 16 in the U.S. Bankruptcy Court for the Southern District of New York.

The debtors, which ceased operations in January 2025, engaged in hard money lending, liquidity enhancement loans, and short-term bridge loans funded through money held in their escrow accounts. Starting in mid-to-late 2022, most funds flowing into those escrow accounts were used to support a single client that proved unable to repay, ultimately depleting the accounts and leaving the debtors unable to close pending real estate transactions. After the shutdown, numerous former clients and other creditors sued the debtors and Mark Nussbaum, asserting a range of claims including malpractice, breach of duty, negligence, alleged fraudulent transfers, among other allegations.

In June 2025, the debtors attempted to wind down through an Assignment for the Benefit of Creditors in New York state court. According to the declaration, that ABC proceeding has effectively stalled: while a few lawsuits were filed, there has been minimal progress toward recoveries or creditor distributions, and the absence of a litigation stay has allowed actions against the debtors to continue in multiple courts, risking conflicting rulings and delay.

The Chapter 11 filing is intended to terminate the ABC, centralize the litigation in bankruptcy court, and pursue value maximization through a liquidation plan. The declaration states that the debtors have no secured creditors, that independent CRO Ephraim Diamond has sole decision-making authority, and that Nussbaum has no control over the debtors. The CRO identifies as core objectives investigating the debtors’ prepetition conduct, identifying and pursuing assets and claims, and maximizing value for stakeholders.

Nussbaum Lowinger LLP reports $10 million to $50 million in assets and $100 million to $500 million in liabilities. The filing indicates that there will be funds available for distribution to unsecured creditors. The case number is 26-22383.

⁽¹⁾ Mark J. Nussbaum and Associates, PLLC.

Key Parties

Counsel:

• Jonathan L. Flaxer
  Spencer Fane LLP
  Email: [email protected]

Financial Advisor / CRO:

• Arbel Capital Partners LLC (Ephraim Diamond)

Bondoro Insights is continuing to monitor this case and will provide further coverage as appropriate.

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