/ 0
60%
Table of contents

Document in text mode:

Page 173 TITLE 11—BANKRUPTCY §552 or a lien that is void is preserved for the benefit of the estate, but only with respect to property of the estate. This prevents the trustee from asserting an avoided tax lien against after acquired property of the debtor. SENATEREPORTNO. 95–989 This section is a change from present law. It specifies that any avoided transfer is automatically preserved for the benefit of the estate. Under current law, the court must determine whether or not the transfer should be preserved. The operation of the section is automatic, unlike current law, even though preserva-tion may not benefit the estate in every instance. A preserved lien may be abandoned by the trustee under proposed 11 U.S.C. 554 if the preservation does not bene-fit the estate. The section as a whole prevents junior lienors from improving their position at the expense of the estate when a senior lien is avoided. §552. Postpetition effect of security interest (a) Except as provided in subsection (b...