Bad Boy Carve-Outs refer to provisions in nonrecourse loans which hold the borrower or guarantor liable for the loan under specific circumstances. These carve-outs include misappropriation of funds, environmental violations, waste, and voluntary bankruptcy.
Bankruptcy is a legal proceeding involving a person or business that is unable to repay outstanding debts. Through bankruptcy, the debtor may seek relief from some or all debts.
Chapter 7 bankruptcy involves the liquidation of a debtor's non-exempt assets to pay off creditors in exchange for the discharge of most debts.
Confirmation of Sale refers to the official recognition and approval of the sale of property by a court of law. This process validates that the sale was conducted properly according to legal standards.
Discharge in Bankruptcy refers to the release of a bankrupt party from the obligation to repay debts that were, or might have been, proved in a bankruptcy proceeding.
Ownership form methods influence various aspects of real estate management including income tax, estate tax, continuity, liability, survivorship, transferability, disposition at death, and bankruptcy.
A receiver is an individual or entity appointed by a court to manage, oversee, and maintain a property that is involved in ongoing litigation to ensure that the property is preserved and managed properly.
A Secured Loan is a loan that is backed by an asset or collateral, reducing the risk for the lender and often resulting in lower interest rates for the borrower. Examples include mortgages and auto loans.
A workout agreement entails a mutual effort by a property owner and lender to avoid foreclosure or bankruptcy following a default. It generally involves substantial reduction in the debt service burden during an economic depression.
