Single Asset Real Estate Bankruptcies Revisited


In 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act made substantial changes to the administration of bankruptcy cases that involve single asset real estate (“SARE”) matters. Most notably, the 2005 Act greatly expanded the applicability of the SARE rules. Before the 2005 Act, the SARE provisions did not apply if the property’s value exceeded $4 million. The 2005 Act eliminated this $4 million cap and, as a result, the SARE provisions are now applicable to a larger number of real estate cases.

The elimination of this cap coupled with the economic downturn of 2007 to 2009 has increased the importance of the SARE provisions in bankruptcy cases. Classifying a debtor’s bankruptcy case as a SARE case greatly favors lenders by reducing the amount of time the debtor can spend in chapter 11. This Alert summarizes the key SARE provisions and provides a framework for dealing with issues that arise in SARE bankruptcy cases.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Buchalter | Attorney Advertising

Written by:


Buchalter on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.