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In M Design Vill. v. Versant Funding LLC (In re M Design Vill.), Adv. No. 24-01639, (Bankr. D.N.J. July 24, 2025), the U.S. Bankruptcy Court for the District of New Jersey held that future rights to payment (i.e., future cash receipts that do not yet exist) cannot be sold. The court based its findings on orders entered earlier in the case, to which the parties had failed to object, and which were deemed to be the law of the case.
This decision leaves little doubt that agreements attempting to sell future receivables that do not yet exist will be heavily scrutinized by bankruptcy courts and is a reminder to parties that do assert such rights in future receivables to be vigilant about protecting those asserted rights at every stage of the bankruptcy case.
In this Westlaw Today article, Loeb Restructuring & Bankruptcy partner Bethany Simmons and associate Noah Weingarten discuss the court’s reasoning and its implications for parties seeking to enforce rights in future receivables.
To read the full article, please visit Westlaw Today’s website.
This decision leaves little doubt that agreements attempting to sell future receivables that do not yet exist will be heavily scrutinized by bankruptcy courts and is a reminder to parties that do assert such rights in future receivables to be vigilant about protecting those asserted rights at every stage of the bankruptcy case.
In this Westlaw Today article, Loeb Restructuring & Bankruptcy partner Bethany Simmons and associate Noah Weingarten discuss the court’s reasoning and its implications for parties seeking to enforce rights in future receivables.
To read the full article, please visit Westlaw Today’s website.
