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.