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Qualified Intermediary Bankruptcies

A look at the Land America bankruptcy, in which approximately 450 individual exchangers suddenly lost legal possession of their exchange proceeds when Land America filed for bankruptcy.

28 minute read May 25, 2010 at 09:28 AM
By
Emil Hirsch and Thomas Lynch
Qualified Intermediary Bankruptcies

When an IRS Code ' 1031 “qualified intermediary” files for bankruptcy, this triggers unique challenges to the constitutionality of the bankruptcy process, as well as to the boundaries of a bankruptcy court's equitable powers under Bankruptcy Code ' 105 and interpretations of state property law.

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