Jason A. Sansone recently presented at the Oklahoma Bar Association’s 2023 Banking and Commercial Law Update.
In his presentation, titled “Can I take it? Lenders’ Setoff and Recoupment Rights in Bankruptcies,” he discussed a lender’s rights to setoff and recoupment when the borrower files bankruptcy, and he defined what qualifies as each. Jason also talked about issues related specifically to bankruptcy and addressed remedies and tactics that a lender can take to protect their interest.
Setoff is an equitable right of a creditor to deduct a debt it owes to the debtor from a claim it has against the debtor arising out of a separate transaction.
Recoupment differs in that the opposing claims must arise from the same transaction.
“I enjoyed presenting at the 2023 Banking and Commercial Law Update on this important topic because, while it is critical for my colleagues’ and my clients to protect their interest, it is equally important to not run afoul of the Bankruptcy Code,” Jason said.
Learn more about setoff and recoupment at the Dept. of Justice website.
Jason A. Sansone is an experienced commercial litigation attorney at Phillips Murrah who focuses on the defense of banks and businesses and representation related to creditor rights. You can contact Jason at 405.552.2425 or jasansone@phillipsmurrah.com.
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