Consultations are available over video, in person and also over the phone the same day.
Skip to content

Single Asset Realty Entities in Chapter 11

Published August 23, 2014 by Sasser Law Firm

Single asset reality entities (SARE) are viewed with some suspicion in bankruptcy courts. Bankruptcy is supposed to serve one of two purposes: either it officiates the fair and equal distribution to creditors of what can be gained by selling off a debtor’s assets, or it reorganizes a going-concern’s debt obligations with a view in mind of getting to creditors something even greater than they would get in a liquidation. But a SARE doesn’t really enable a bankruptcy to accomplish either of these very well. For one thing, a SARE typically only has one creditor – the secured lender that has a mortgage or deed of trust on the property. For another, there isn’t usually much of an operation to reorganize: there are no employees, no trade debt, no inventory. In short, when a SARE is involved, the bankruptcy system is reduced to a last-ditch effort for an entity to stave off foreclosure just a little bit longer. It’s rarely argued any more than SAREs simply don’t belong in bankruptcy at all, but they remain second-class citizens and are subjected to shortened time-constraints and the secured lender in these cases are granted certain rights that they ordinarily don’t possess in chapter 11 cases.

Associations & Awards

  • Business North Carolina 2022 badge
  • Attorney at Law Magazine, Local Authority Award
  • 2019 Business North Carolina Legal Elite Badge
  • super lawyers logo
  • expertise logo
  • North Carolina Bar Association | Sasser Law Firm
  • Martindale-Hubbell award for high professional achievement at Sasser Law Firm
  • NC Bar Association Legal Specialization | Sasser Law Firm
  • Top Bankruptcy Attorney | Sasser Law Firm
  • American Bankruptcy Institute | Sasser Law Firm
  • National Association of Consumer Bankruptcy Attorneys | Sasser Law Firm
  • American Board of Certification | Sasser Law Firm
Free Consultation (919) 319-7400

Visit our cary office today

Cary, NC Office