Bankruptcy creditors can’t claim proceeds of restricted gifts

General creditors in bankruptcy can’t claim all of the proceeds from the sale of a restricted real estate gift to the debtor, a bankruptcy court handling the bankruptcy of the Catholic Diocese of Buffalo, NY has ruled.

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May 30, 2025

The loan agreement says: “All contractual rates of interest chargeable on the outstanding Term Loans shall continue to accrue and be paid even after default, maturity, acceleration, judgment, bankruptcy, insolvency proceedings of any kind or the happening of any event or occurrence similar or dissimilar.”

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Bankruptcy creditors can’t claim proceeds of restricted gifts

Bankruptcy creditors can’t claim proceeds of restricted gifts