Equitable Subordination and Recharacterization

The doctrine of equitable subordination is based upon principles of equity, and allows a court to subordinate the claim of one creditor to the claims of other creditors. Section 510(c) of the Bankruptcy Code addresses equitable subordination of claims filed in bankruptcy cases. Subsection (c)(1) states “Notwithstanding subsections (a) and

Read More

Cure Periods for Assuming Executory Contracts and Leases

Cure Periods for Assuming Executory Contracts and Leases Section 365(b)(1) of the Code sets forth the requirements which a debtor must satisfy to assume an unexpired lease or executory contract and it specifically provides that: “If there has been a default on an… unexpired lease of the debtor, the [debtor

Read More