Bankruptcy and the Single Asset Real Estate Debtor

December 2012Articles 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.