In this blog we talk about how leases and other executory contracts are handled in the SBRA reorganization process. First, some general principles. The law only applies to leases or executory contracts that are unexpired. If a tenant waits too long to get their bankruptcy case filed they could lose a number of valuable rights […]
In this building block blog we discuss what are known as preference payments and the rules for when these payments can be “clawed back” from the creditor who received them. Returned preference payments would then, in turn, be used to fund the reorganization plan. When must a payment be further analyzed to determine if it
In this building block blog we look at a very specific issue: what options does a tenant have to handle past-due rent in a reorganization plan? Breaking this down: what options does the tenant have under the SBRA? And, second, what options does the tenant have under state law? Let’s first look at options available
In this building block blog we look at one of the more radical changes that the SBRA makes to the law applicable to the reorganization of a business’s debts- the ability to modify the terms of any loan secured only by your personal residence. In the past, loans against personal residences were sacrosanct. Bright line
All is not lost if you, a friend or relative signed personal guarantees on business equipment purchases, unsecured lines of credit or leases. First, the court can, and typically will, issue an order under section 105 of the code barring the creditor from pursuing the personal guarantor of the debt while the reorganization plan is
Personal Guarantees and the Small Business Reorganization Act. Read More »