Real estate debtor principals who guaranty a debtor's debts often face uphill battles to obtain stays pursuant to § 105 or the Bankruptcy Court or guaranty actions against them by secured creditors of the debtor. The bankruptcy court in In re Chicora Life Center. LC 111 recently issued such a stay. That court applied traditional § 105 analysis to a guarantor with very favorable facts, making Chicora Life Center unlikely to be a harbinger of real estate mortgage guarantors obtaining stays more readily. Read more*

*Subscription based publication.