There is a shared responsibility that a mediator needs to be selected by the parties to the issue in dispute. The choice of a mediator should be based on their knowledge of financially oriented issued that involve bankruptcy considerations and their reputational effectiveness in reducing the risks from an emotional atmosphere that is often customary when there is negotiation of bankruptcy issues. The mediator should be focused on the parties' real and practical problems that must be addressed, the costs and risks associated with having to fight through long and complicated trials and appeals and whether the issues in dispute can be subject to a global or partial determination.
Mediation has been utilized in several types of case; in particular, when dealing with in bankruptcy cases with complex multi-party chapter 11 reorganizations, preference and avoidance actions, objections to discharge other adversary proceedings, claim objections and other contested matters.