Navigating the Bankruptcy Court's Power to Modify A Secured Creditor's Lien

This article focuses on the impact of section 552 of the Bankruptcy Code, which addresses the effect of a bankruptcy filing on property acquired by the debtor after the filing of the bankruptcy case (referred to as "after-acquired property") and proceeds of pre-bankruptcy collateral.

24 minute read April 02, 2017 at 12:02 AM
By
David M. Hillman and James T Bentley
Navigating the Bankruptcy Court's Power to Modify A Secured Creditor's Lien

As a borrower approaches bankruptcy, secured creditors often believe that their existing liens and collateral packages will be respected by the bankruptcy court, absent a basis to challenge priority, perfection or some misconduct to justify equitable subordination.

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