Key Bankruptcy Concepts

It is important for real estate lenders to be familiar with certain key concepts under the Bankruptcy Code, each of which is discussed in this Chapter.  They include:

•    The Bankruptcy Estate

•    The Automatic Stay

•    Section 363 Sales

•    Rejection of Leases

•    Collection Against Guarantors

•    Priority of Claims; and

•    Avoidance Actions.

Additionally, for consumer bankruptcies, lenders should be familiar with:

•    Discharge

•    Exempt Property

•    Redemption; and

•    Reaffirmation