Bankruptcy Law Commons^™

Adequate Protection- The Equitable Yardstick Of Chapter 11, Amy S. Ashworth

University of Richmond Law Review

A debtor who files a petition for relief under the Bankruptcy Reform Act of 1978 (the Code) triggers the automatic stay provisions of the Code. The automatic stay precludes creditors from enforcing their rights in the collateral pending further order of the Bankruptcy Court. An issue which has spurred continued controversy is whether undersecured creditors who are stayed from repossessing their collateral are entitled to compensation for the delay in enforcing their rights in the collateral. It is agreed that the concept of adequate protection provides for the preservation of the value of the collateral due to its use, depreciation, …