Can disputes in a bankruptcy case really be resolved through mediation?

Yes — mediation has become an increasingly common and powerful tool in bankruptcy, particularly in complex Chapter 11 cases. Although a bankruptcy proceeds under the supervision of the bankruptcy court, many of the disputes within it are well suited to mediation: objections to a plan of reorganization, disputes among creditor groups, and various contested matters and adversary proceedings. A mediator helps the parties negotiate a consensual resolution, but has no power to impose an outcome and cannot bind the court, whose approval of any plan remains its own responsibility. Because a core goal of Chapter 11 is a consensual reorganization, mediation aligns naturally with the bankruptcy process itself.