Understanding the complex interplay between successor liability and bankruptcy law is crucial for creditors seeking to recover debts. In this article in our Creditor’s Toolkit series, we dissect the nuances of Section 363(f) of the Bankruptcy Code, which typically exempts bankruptcy sales from successor liability, while also shedding light on the exceptions to this rule.

We delve into key issues such as the varying interpretations of successor liability across different courts, the potential role of channeling injunctions in extreme circumstances, and the critical importance of compliance with bankruptcy sale orders.

Given the complexity of these issues and the potential for exceptions, we underscore the importance of engaging experienced bankruptcy counsel. Such expertise is invaluable in navigating these legal intricacies and assessing the potential recovery options available to creditors.

In conclusion, while the intersection of bankruptcy law and successor liability presents a challenging landscape, informed navigation of these complexities can open up potential avenues for debt recovery. Read the full article here.