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Bankruptcy

: The Debt Podcast

Equity Cushion Standard for Adequate Protection

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Secured creditors of a debtor in bankruptcy are entitled to adequate protection against erosion in their collateral value. Debtors’ attorneys often argue that adequate protection exists by pointing to a so-called “equity cushions.” An equity cushion exists when the debtor has sufficient equity in the collateral to protect against its depreciation and the [...]

Full post as published by The Debt Podcast on April 17, 2008 (boomark / email).

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