Creditors' Setoff Rights in Bankruptcy | Practical Law

Creditors' Setoff Rights in Bankruptcy | Practical Law

This Practice Note discusses creditors' setoff rights in bankruptcy, including the conditions to exercising setoff rights and the limitations on these rights. This Note also discusses how the Bankruptcy Code's safe harbor provisions protect the setoff rights of certain counterparties, the waiver of setoff rights, the distinction between prepetition setoff and postpetition setoff, how to structure transactions to maximize setoff rights, and strategies for creditors holding setoff rights.

Creditors' Setoff Rights in Bankruptcy

Practical Law Practice Note 9-520-0952 (Approx. 38 pages)

Creditors' Setoff Rights in Bankruptcy

by Practical Law Bankruptcy & Restructuring and Practical Law Finance
MaintainedUSA (National/Federal)
This Practice Note discusses creditors' setoff rights in bankruptcy, including the conditions to exercising setoff rights and the limitations on these rights. This Note also discusses how the Bankruptcy Code's safe harbor provisions protect the setoff rights of certain counterparties, the waiver of setoff rights, the distinction between prepetition setoff and postpetition setoff, how to structure transactions to maximize setoff rights, and strategies for creditors holding setoff rights.