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SCOTUS to Settle Chapter 7 Lien-Stripping Circuit Split

Posted in Circuit Split, mortgage, SCOTUS, Uncategorized
lien strippingOn November 17, the Supreme Court granted certiorari in the consolidated cases of Bank of America v. Caulkett (Dkt. 13-1421) and Bank of America v. Toledo-Cardona (Dkt. 14-163).  At issue in these appeals is whether the Bankruptcy Code permits Chapter 7 debtors to “strip-off” wholly out-of-the-money junior mortgages using Section 506(d).  This appeal sets out to… Continue Reading

Protecting the Lender: Strategies for Extending Credit to Health Care Providers

Posted in Accounts Receivable, Collateral, Healthcare, Uncategorized, Workouts
Contrary to popular belief, lending to a doctor is risky business. The business of a health care provider is specialized and, therefore requires specialized lending. Lenders cannot simply repackage loan documents used for other industries, and having a lien on receivables may not alleviate the risk. Lenders must accurately value the collateral and to do… Continue Reading