Bankruptcy and the Single Asset Real Estate DebtorDecember 2012 – Articles CCIM
Tara H. Popova authored the CCIM article, "Bankruptcy and the Single Asset Real Estate Debtor." Full text can be found in the December 2012, issue, but a synopsis is noted below.
As a result of the economic downturn and real estate crisis, bankruptcy filings by homebuilders, contractors and developers have increased significantly.
In a typical Chapter 11 case, the debtor has 120 days from the date it filed bankruptcy to propose a reorganization plan, during which no foreclosure or collections can take place. Those benefits are limited in a case filed by a single asset real estate (SARE) debtor however.
In the case of a SARE debtor, the automatic stay is limited to 90 days from filing bankruptcy or 30 days from the court’s designation of the debtor as a SARE.