Section 553(a) of the Bankruptcy Code preserves a creditor's prepetition right to setoff. Courts have strictly construed Section 553(a) to limit the preservation of setoff rights to claims and debts that arose prior to the commencement of the debtor's bankruptcy case.
Navigating Triangular Setoff Through Safe Harbors
An in-depth discussion of Safe-Harbored contracts and protected entities.
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