85 Given the increasing number of defaults on mortgages, mezzanine debt and other loans in the real estate market today, creditors are going to be faced with decisions on how to effect remedies in the most efficient way possible, and recover the maximum (if not the full) amount of their claims. Secured creditors holding a mortgage always have the option of foreclosure, which allows them to take possession of a borrower’s assets in a judicially supervised process. However, depending on the facts and jurisdiction, creditors initiating a foreclosure process may wind up in a protracted litigation rather than swiftly recovering value. Another option available to unsecured creditors, including undersecured creditors, especially if there are other creditors whose claims also need to be addressed, is to file an involuntary bankruptcy petition against the A Recent Bankruptcy Court Decision Upheld a Petition Filed by Holders of Israeli Publicly Traded Bonds Michael Friedman, Partner, Chapman and Cutler LLP Eric Silvestri, Partner Chapman and Cutler LLP Helena Honig, Associate, Chapman and Cutler LLP
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