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Cherry Picking Contract Provisions in Bankruptcy: Not so Taboo After All?

08/06/13

One of the quintessential principles of the Bankruptcy Code is that when a debtor assumes an executory contract, it must assume the contract as a whole – a debtor cannot cherry pick the contract provisions it wants to assume while rejecting others. Two recent bankruptcy court decisions – In re Hawker Beechcraft, Inc. and In re Contract Research Solutions, Inc. – demonstrate a growing trend among debtors to test the parameters of this general rule.

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What is a Redemption of Property in Chapter 7

03/19/11

If you are purchasing a vehicle and you file Chapter 7, your options are (1) surrender the vehicle, (2) reaffirm the existing loan, or (3) redeem the vehicle by paying the lender fair market value.  Redemption, which is described at Section 722 of the Bankruptcy Code used to be an uncommon choice.  More recently, however, several lenders have entered the market to finance Section 722 redemptions.  In this video, I discuss how redemptions work and how to know if a Motion for Redemption under Section 722 is a good idea.

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