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Bankruptcy Preference and Insider Guarantees

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This video refers to the Deprizio Doctrine, under which a bankruptcy trustee may disgorge assets from guarantors that could otherwise satisfy the debt.

  • – Levit v. Ingersoll Rand Fin. Corp. (In re Deprizio), 874 F.2d 1186 (7th Cir. 1989)
  • Stahl v Simon ( In re Adamson, Apparel, Inc.) 785 F.3d 1285 9th Cir. May 6, 2015)

The video also touches the following points : –

  • Whether there is a solution to the Deprizio problem, i.e. a carefully crafted waiver against the bankruptcy debtor ?
  • Split among courts on whether the waiver solution works.

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