Exercising Setoff and Recoupment Rights in Bankruptcy
Mutuality of Obligation; Disputed Transactions; Relief From Automatic Stay
Recording of a 90-minute CLE webinar with Q&A
This CLE course will examine the doctrines of setoff and recoupment and the issues presented in exercising those rights in bankruptcy. The panelist will discuss mutuality and other conditions which must be present to establish setoff or recoupment rights and inconsistencies in the case law as applied to both types of actions.
- Setoff rights and the doctrine of mutuality
- Recoupment between parties to the same transaction
- Exercising setoff and recoupment rights in Chapter 11
- Significant case law
The panelist will review these and other key issues:
- What is the significance of the doctrine of mutuality in setoff claims and how strictly is it applied?
- How does recoupment differ from setoff?
- Can a creditor seek setoff or recoupment in connection with a contract in dispute?
- What is required for a creditor to bring a recoupment or offset claim and lift the automatic stay in Chapter 11 proceeding?
- Why would a creditor not want to offset mutual debts prepetition and wait until after a bankruptcy filing? Why would a creditor want to offset mutual debts prepetition?
Joseph A. Shifer
Kramer Levin Naftalis & Frankel
Mr. Shifer’s practice focuses primarily on corporate restructuring and bankruptcy matters. His restructuring... | Read More
Mr. Shifer’s practice focuses primarily on corporate restructuring and bankruptcy matters. His restructuring experience includes representing and advising debtors, official creditors’ committees, ad hoc creditor groups, noteholders, plan proponents, distressed investors, and other estate constituencies and fiduciaries, in both complex chapter 11 cases and out of court restructurings. He also advises financial institutions regarding investments in distressed companies. He has been involved in matters relating to a diverse range of industries including financial, shipping, retail, automotive, manufacturing, mining, healthcare, and gaming.Close