Lender Issues in Borrower's Bankruptcy

Summary

This practice note discusses the factors that lenders should consider when examining and analyzing a bankruptcy case or a potential bankruptcy case in terms of the various issues that could affect the lender's claim prior to the filing of and during the pendency of the bankruptcy case. These issues may include, among other things, preferences, equitable subordination, debt recharacterization, the automatic stay, fraudulent transfers, and executory contracts and unexpired leases.