Intersection of Bankruptcy and State Foreclosure Laws

Protecting Foreclosure Remedies and Overcoming Bankruptcy Pitfalls When Dealing With Distressed Borrowers

Recording of a 90-minute CLE webinar with Q&A

Conducted on Tuesday, February 8, 2011

Recorded event now available

or call 1-800-926-7926
Program Materials

This CLE webinar will provide counsel to lenders and creditors with a review of the intersection between bankruptcy and state foreclosure laws with respect to secured interests and commercial real estate. The panel will outline strategies to minimize risks in exercising foreclosure remedies and navigating bankruptcy.


Secured lenders are increasingly resorting to enforcing foreclosure remedies under UCC Article 9 and state real property foreclosure laws. However, when the borrower files for bankruptcy, state foreclosure laws often collide with bankruptcy laws.

As lenders exercise foreclosure remedies prior to bankruptcy, they must understand the potential pitfalls that they will face should the borrower file for bankruptcy. There are steps lenders can take to minimize the impact that bankruptcy will have on their secured interest.

Once the lender is dragged into bankruptcy court, its abilities to avail itself of state law foreclosure remedies are altered. The lender then must navigate the bankruptcy rules in order to preserve its foreclosure remedies.

Listen as our authoritative panel of bankruptcy attorneys discusses the tension between bankruptcy and state foreclosure laws and provides strategies to minimize bankruptcy risks in exercising foreclosure remedies.



  1. Strategies for navigating bankruptcy of distressed borrowers
    1. Relief from the automatic stay
    2. Cash collateral
    3. Post-relief from stay
    4. Asset sales and credit bidding
  2. Impact of bankruptcy on UCC rights and collateral
    1. Fraudulent transfer
    2. Preference actions
    3. Lender liability
  3. Impact of bankruptcy on distressed real estate
    1. Asset sales
    2. Dirt for debt
    3. Deeds-in-lieu of foreclosure
    4. Single-asset real estate
    5. Bad-boy guarantees


The panel will review these and other key questions:

  • What must the lender consider in conducting a UCC foreclosure sale to minimize a subsequent challenge in the debtor's bankruptcy?
  • What factors must a lender show to obtain relief from the bankruptcy automatic stay?
  • What is the effect of a foreclosure sale or deed in lieu transaction in a subsequent bankruptcy proceeding?
  • What bankruptcy rules apply to single-asset real estate?

Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.


John F. Isbell
John F. Isbell

Thompson Hine

He focuses his practice on the representation of secured lenders and debtors/borrowers in bankruptcy cases,...  |  Read More

Johnathan C. Bolton
Johnathan C. Bolton


Mr. Bolton's practice focuses on business and commercial law, real estate and business litigation, debtor/creditor...  |  Read More

Craig S. Unterberg
Craig S. Unterberg

Haynes & Boone

He concentrates his practice in the areas of representing borrowers and lenders in secured and unsecured lending and...  |  Read More

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