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Recent Amendments Place Creditors in a Stronger Position to Defend Against Chapter 11 Bankruptcy Preference Lawsuits

Fraser

What’s worse—and which often comes as a big surprise—is when a business gets sued by the debtor or bankruptcy trustee seeking to recover payments made by the debtor before the bankruptcy. The look-back period for payments is increased to one year for “insiders.” That’s how the system is supposed to work.

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Non-Income Producing Properties that Never Operated can be Single Asset Real Estate Under the Bankruptcy Code

ABI

ii] Consequently, the designation of a debtor as a SARE may have significant ramifications in a case. million construction loan from Evertrust Bank (“Evertrust”) to build a hotel. [v] v] Because Evertrust refused to fund $4 million on the loan, The Source Hotel halted construction. [vi]

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Update: Supreme Court Resolves Circuit Split Regarding Pre-Bankruptcy Seizure

PBWT

In 2019, we began following a Circuit split regarding a secured creditor’s obligation to return collateral that it lawfully repossessed pre-petition after receiving notice of a debtor’s bankruptcy filing. ” [ii] In December, the Supreme Court granted certiorari and on Thursday adopted the minority view.

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Filing a Proof of Claim in Bankruptcy: What You Need to Know

Fraser

When a company files for bankruptcy and it owes you money, it means you have a “claim” in the debtor’s bankruptcy proceedings. A claim, in short, is a right to payment. A creditor with a claim must often take affirmative action by filing a “proof of claim” form in order to preserve and protect its rights to payment.

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As Chapter 11 Bankruptcy Filings Surge, Here’s What Creditors Need to Know to Protect and Enforce Their Rights

Fraser

The petition date is the date on which a debtor files a chapter 11 bankruptcy proceeding. The debtor is required to serve all known creditors with notice of the commencement of the chapter 11 case. In order to participate in the distribution of the debtor’s assets to satisfy pre-petition claims, a creditor must have a valid claim.

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COVID-19 Collections Impact Bulletin: State Responses (December 2020 Update)

Burr Forman

The new bill issued a moratorium on evictions, foreclosures, and repossessions, which expired on June 30, 2020. On April 23, 2020, Governor Gavin Newsom issued Executive Order N-57-20 exempting stimulus payments and other COVID-19-related government financial assistance from attachment, levy, execution, or garnishment.

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Troutman Pepper Weekly Consumer Financial Services COVID-19 Newsletter

Troutman Sanders

Our bank and loan servicing clients also face novel challenges affecting their industry due to COVID-19, particularly the ever-changing rules and regulations concerning evictions and foreclosures. You may access this interactive tool at [link]. For more information, click here. For more information, click here. On May 12, Oregon H.B.