White Paper

Serial Filers - Lenders and Lessors Given a New Remedy

 
What can a lender do about successive bankruptcy filings by a borrower? What can lessors do when their tenants file successive bankruptcy petitions? A recent decision by a bankruptcy court in the Eastern District of New York gives guidance on these questions.
Readers of this blog know that immediately upon the filing of a bankruptcy petition, section 362(a) of the Bankruptcy Code imposes a stay on a variety of creditor activities. It freezes all actions to collect prepetition debts, as well as many other actions that could be taken by creditors against the debtor or property of the estate. The automatic stay is an integral part of the bankruptcy process, as it gives the debtor immediate relief from its creditors and an opportunity to deal with the creditors as permitted by the Bankruptcy Code.

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Mark Salzberg is a partner in the Washington DC office and a member of the firm’s Restructuring & Insolvency practice group. He focuses his practice on bankruptcy litigation, creditors’ rights, debtor reorganizations and complex commercial litigation. Mark has extensive experience representing debtors, creditors’ committees, financial institutions, secured and unsecured creditors, franchisors and distributors in bankruptcy matters throughout the United States.