Generally, regardless of what “debt” means in other areas of life and law, it means something a little different under the Bankruptcy Code. That definition becomes important when, as is more common these days, your client, or a party obligated to your client, declares bankruptcy.
Lease Termination Fees May Be an Avoidable Preference Under the Bankruptcy Code
Recently, the Eleventh Circuit considered whether future rent under a lease was "debt" for purposes of bankruptcy, and held that a tenant becomes "indebted" to the landlord for all future rental payments for the life of the lease at the moment the lease is executed.
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