Creditors' Setoff Rights in Bankruptcy | Practical Law
This Practice Note discusses creditors' setoff rights in bankruptcy, including the conditions to exercising setoff rights and the limitations on these rights. This Note also discusses how the Bankruptcy Code's safe harbor provisions protect the setoff rights of certain counterparties, the waiver of setoff rights, the distinction between prepetition setoff and postpetition setoff, how to structure transactions to maximize setoff rights, and strategies for creditors holding setoff rights.