COMMERCIAL REAL ESTATE
Sometimes Individuals or Corporations own one large commercial building and need Bankruptcy protection to keep from losing this key asset.
The single asset real estate (SARE) Chapter 11 is a specific type of bankruptcy filing that is designed for individuals or businesses that own a single property or real estate project. It is a specialized form of Chapter 11 bankruptcy that focuses on the reorganization and management of a single real estate asset.
In a SARE Chapter 11 case, the debtor typically owns a property that generates income, such as a commercial building, apartment complex, or hotel. The purpose of filing for SARE Chapter 11 is to provide the debtor with an opportunity to restructure their debts and develop a plan to repay creditors while maintaining control over the property.
One of the key features of SARE Chapter 11 is the imposition of certain deadlines and requirements to expedite the bankruptcy process. This is done to prevent debtors from using bankruptcy as a means to delay foreclosure or eviction proceedings indefinitely. The debtor is required to propose a plan for reorganizing their debts within a specific timeframe, and if they fail to do so, creditors may be able to seek relief from the automatic stay and proceed with foreclosure or other actions.
The goal of SARE Chapter 11 is to allow the debtor to continue operating the property and generate income while working towards a feasible repayment plan. This can involve negotiating with creditors to modify loan terms, reduce interest rates, or extend repayment periods. By doing so, the debtor can potentially improve the property’s financial performance and increase its value, benefiting both the debtor and the creditors.
It is important to note that SARE Chapter 11 cases can be complex and require the expertise of legal professionals who specialize in bankruptcy and real estate law. These professionals can assist debtors in navigating the intricacies of the bankruptcy process, developing a viable reorganization plan, and negotiating with creditors to achieve the best possible outcome.
In summary, single asset real estate (SARE) Chapter 11 is a specialized form of bankruptcy that focuses on the reorganization and management of a single real estate asset. It provides debtors with an opportunity to restructure their debts, develop a repayment plan, and continue operating the property while working toward financial stability. Shepherd and Wood, LLP offers the experience and expertise that is crucial for a successful SARE Chapter 11 filing.