In re Bordeaux Ventures, LLC, No. 3:25-BK-02702, 2025 WL 2967288 (Bankr. M.D. Tenn. Oct. 17, 2025), illustrates some of the risks and strategies a secured creditor might consider when a real estate debtor files a bankruptcy case to stay an impending foreclosure.
Navigating the SARE Runway: A Secured Creditor’s Perspective
Many single asset real estate (SARE) bankruptcies will check some or all of the boxes for a bad faith filing. The timing of a SARE filing commonly suggests an intent to delay, as SARE filings are generally a last resort to stay foreclosure. Nevertheless, courts may be reluctant to dispose of these cases as bad faith filings, absent particularly egregious circumstances evidencing patent abuse of the bankruptcy process.

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