Substitution of Collateral: It Don’t have to be so Difficult!

By Tony Sottile, Esq., Sottile & Barile, LLC (Cincinnati, OH)

Like many matters we all handle in a bankruptcy context, some we enjoy and some we enjoy… well, a little less. Regardless of the position you have in this area of law – whether you are Debtors’ Counsel, Creditors’ Counsel, a Trustee or a Judge, you likely cringe a little when a Motion to Substitute Collateral comes up.

Here’s what happens to get to this point – the Debtor, post-petition, is in an automobile accident involving a vehicle which is security for a loan with a secured automobile lender . . .

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