Under Chapter 11 of the U.S. Bankruptcy Code, debtors have the opportunity to propose a reorganization plan and retain control of their business. A common undertaking for corporations or partnerships, Chapter 11 proceedings require debtors to file a number of documents with the court, including schedules of assets and liabilities, statements of financial affairs, schedules of income and expenditures, and schedules of unexpired leases and executory contracts. Chapter 11 also includes special provisions for individuals and entities known as “single asset real estate debtors.”
Defined as a single piece of real estate that represents the majority of the gross income of a debtor, single asset real estate may qualify for relief from the automatic stay present in most Chapter 11 proceedings. Common examples of single asset real estate include commercial shopping centers, apartment complexes, office buildings, and warehouse properties. If a debtor fails to file a reorganization plan or commence monthly payments to a secured lender within 30 days of single asset real estate determination, the court typically grants an automatic stay and enables the lender to exercise its collateral rights and remedies.
Defined as a single piece of real estate that represents the majority of the gross income of a debtor, single asset real estate may qualify for relief from the automatic stay present in most Chapter 11 proceedings. Common examples of single asset real estate include commercial shopping centers, apartment complexes, office buildings, and warehouse properties. If a debtor fails to file a reorganization plan or commence monthly payments to a secured lender within 30 days of single asset real estate determination, the court typically grants an automatic stay and enables the lender to exercise its collateral rights and remedies.