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ABI Journal

552

Pre-Petition Liens in “Accounts” May Not Survive Post-Petition Sales

May 2023

Bankruptcy Code

A UCC Lien on ‘Accounts’ Won’t Attach to a Postpetition Sale of Real Property

Although a UCC lien on ‘accounts’ would attach outside of bankruptcy to proceeds from the sale of real property, Section 552(b) cuts off attachment if the sale occurs after filing