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Bankruptcy Code Can Present Significant Risks to Lenders

This article discusses two situations where a lender received payments and later was forced to disgorge them. These opinions illustrate two of the ways the bankruptcy code can present significant risks to lenders even after the lender receives payments in accordance with loan agreements or even a court order.

9 minute read February 01, 2025 at 12:09 AM
By
Andrew C. Kassner and Joseph N. Argentina Jr.
Bankruptcy Code Can Present Significant Risks to Lenders

We all know the old saying — possession is 90% of the law. Well, this article discusses the other 10% and review two situations where a lender received payments and later was forced to disgorge them.

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