FEATURE STORY
Bankruptcy Preference Risks to Secured Lenders Using Blocked Accounts: Why You Shouldn’t Sleep Comfortably at Night BY NICOLETTE COHEN Outgoing lenders involved in payoff letters must navigate the hidden risks of preference liability, where payments may be clawed back by bankruptcy trustees. Nicolette Cohen of Buchalter explores how such risks can transform secured claims into unsecured ones and outlines key mitigation strategies to safeguard lender interests.
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THE SECURED LENDER SEPT. 2025