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In re Amaravathi LP

In re Amaravathi LP

Ruling
Rents from debtor's properties were property of the estate despite assignment to mortgagee.
Procedural posture

Bankruptcy debtors owned apartment properties which generated rents and the debtors moved for authority to use the rents which were the cash collateral of the debtors' mortgage lender. The lender objected to such use on the ground that the debtors granted the lender an absolute assignment of the rents and thus the rents were not property of the bankruptcy estate.

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Commercial opinion summary, case decided on August 04, 2009 , LexisNexis #1209-049