Effect of the Bankruptcy Reform Act on mortgages

Article Abstract:

The Bankruptcy Reform Act of 1994 (BRA) was created to protect lenders from bankruptcy filings. The law focuses on preventing debtors from escaping payments to mortgages for single-asset real estate properties. It prevents a trustee or debtor from collecting payment from an affiliate of the guarantor and prohibits debtors from paying cash collaterals unless the other parties are in agreement with the use of such payments. BRA also provides that landlords who rejects a real property lease cannot divest a tenant who have filed for bankruptcy protection.

Commercial Banks, Real Estate, Real Estate and Rental and Leasing, Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors, Mortgage and Nonmortgage Loan Brokers, Consumer Mortgage Loans, Real Estate Services Regulation, Laws, regulations and rules, Commercial law, Mortgages

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A primer on bankruptcy

Article Abstract:

Present economic conditions dictate that a substantial understanding of the US bankruptcy code should come along with involvement in real estate financing. This is because bankruptcy court is one of the more effective measures which both the debtor and creditor can use in dealing with bad loans. An overview regarding the US bankruptcy code is presented with focus given to pertinent issues covering the real estate industry. Included in the overview are discussions on the role of judges, kinds of bankruptcy and initiating bankruptcy proceedings.

Usage, Bankruptcy

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A primer on chapter 11 reorganization

Article Abstract:

The present economic conditions justify the use of bankruptcy as an alternative for investors, owners and debtors in restructuring one's financial standing to avert a probable property alienation. A Chapter 11 reorganization enables a debtor to avail of the Bankruptcy Code and arrive at a settlement with its creditors. Furthermore, the debtor can still hold on to his property in case no trustee is appointed by the bankruptcy court.

REAL ESTATE, Finance

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