Equipment Rentals in Bankruptcy: Allocation Issues Arising from Post-Petition Payments

Courts frequently wrestle with how to apply post-petition payments for rental proceeds deriving from lenders' pre-petition collateral. The issue arises principally in single asset real estate cases, because generally post-petition proceeds of the debtor are the rents attributable to the lender's collateral.

14 minute read July 01, 2013 at 04:04 PM
By
Dennis Dressler
Equipment Rentals in Bankruptcy: Allocation Issues Arising from Post-Petition Payments

Courts frequently wrestle with how to apply post-petition payments for rental proceeds deriving from lenders' pre-petition collateral. The issue arises principally in single asset real estate cases, because generally post-petition proceeds of the debtor are the rents attributable to the lender's collateral.

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