Adequate Protection [Bankruptcy] Law and Legal Definition
Adequate protection under bankruptcy refers to relief created to protect the value of a secured creditor’s lien so that it does not diminish during the bankruptcy proceeding. The relief can be in the form of periodic payments, interest payments, or a replacement lien on other property. It is the discretion of the court to declare a relief as adequate.
The following is an example of a federal law on adequate protection;
An under secured creditor may be entitled to adequate protection to ensure against the decline in value of its collateral. Where there is the possibility of a diminution of a creditor's collateral interest, a debtor may be required to provide the creditor with adequate protection, such as periodic cash payments. [11 USCS § 361].
Legal Definition list
Related Legal Terms
- Access Protection
- Accountant ( Bankruptcy)
- Act of Bankruptcy
- Adam Walsh Child Protection and Safety Act
- Adequate Airport [Aeronautics and Space]
- Adequate and Full Consideration in Money or Money’s Worth
- Adequate and Independent Decision
- Adequate Compensation [Eminent Domain]
- Adequate Consideration
- Adequate Disclosure
