Creditors, Debtors, Section 506

"The § 1111(b) Election: Overview, Considerations and Unique Issues in Subchapter V"

Adams and Reese LLP on 12/8/2023

Under § 506(a)(1) of the Bankruptcy Code, a secured creditor’s claim is secured only to the extent of the collateral’s value. Any amount over that value is bifurcated into a separate unsecured claim. Critically, if a...more

Texas Ruling Guides on Asset Sales for Secured Creditors

Troutman Pepper on 11/17/2022

The general rule in bankruptcy is that administrative expenses, generally defined as the necessary costs and expenses of preserving property of the estate, are paid from the debtor's bankruptcy estate. Originally published...more

Fourth Circuit Bolsters Claims for Postpetition Attorney's Fees Incurred by Unsecured or Undersecured Creditors

Jones Day on 6/19/2019

In SummitBridge Nat’l Invs. III, LLC v. Faison, 915 F.3d 288 (4th Cir. 2019), the U.S. Court of Appeals for the Fourth Circuit ruled that an unsecured or undersecured creditor may include postpetition attorney’s fees and...more

Fourth Circuit Allows Unsecured Creditors to Assert Claims for Attorneys' Fees In Bankruptcy Cases

Rosenberg Martin Greenberg LLP on 2/13/2019

Lawyers who represent debtors in bankruptcy cases, supported by rulings from many bankruptcy judges, have long taken the position that creditors with unsecured claims whose agreements with their debtors provide for payment of...more

Ninth Circuit Reverses Course on Measure of Collateral Value in Cramdown Confirmation of Chapter 11 Plan

Jones Day on 10/4/2017

In First Southern Nat’l Bank v. Sunnyslope Hous. LP (In re Sunnyslope Hous. LP), 2017 BL 216965 (9th Cir. June 23, 2017), the U.S. Court of Appeals for the Ninth Circuit held en banc that, in determining whether a chapter 11...more

Some Upside To Being Upside-Down: The Fifth Circuit Provides Undersecured Creditors An Additional Front On which To Contest...

Cole Schotz on 10/2/2017

Undersecured creditors face unique challenges because they are neither fully secured nor fully unsecured. Beyond the obviously undesirable issue of being upside-down on their deal, undersecured creditors often are exposed to...more

U.S. Supreme Court Holds that Out of the Money Mortgages Cannot be Stripped Off in Chapter 7 Bankruptcy Cases

Dechert LLP on 6/8/2015

The U.S. Supreme Court held that a secured creditor in a chapter 7 bankruptcy case is protected from having its lien “stripped off” even if the collateral securing its claim is worth less than the claims asserted by a senior...more

Creditors › Debtors › Section 506