We beg to differ that AI Chatbots Are Useless for Bankruptcy Lawyering. Attaching ChatLaw's response to one of the author's (Josiah M. Daniel, III) questions. Clearly, useful, no? Try your own at https://chatlaw.us!
I typed: In bankruptcy, what is the test for "single asset real estate"?
ChatLaw: The test for "single asset real estate" in bankruptcy is defined under section 101(51B) of the Bankruptcy Code. According to this section, single asset real estate refers to real property constituting a single property or project, other than residential real property with fewer than 4 residential units, which generates substantially all of the gross income of a debtor who is not a family farmer and on which no substantial business is being conducted by a debtor other than the business of operating the real property and activities incidental thereto (Case: 19-30388 Northbelt, LLC, 2020).
Furthermore, when income is earned through active operations and not mere ownership of real property, the debtor is not a single asset real estate debtor (In re Scotia Development, LLC, 375 B.R. 764 (Bankr. S.D. Tex 2007), Case: 15-80432 Nuvira Hospitality Inc., 2016).
In the context of a bankruptcy case, the court may grant relief from stay in a single asset real estate case, unless the debtor has filed a plan of reorganization that has a reasonable possibility of being confirmed within a reasonable time, or the debtor has commenced monthly payments that may be made from rents or other income generated before, on or after the date of the commencement of the case by or from the property to each creditor whose claim is secured by such real estate (11 U.S.C. 362(d)(3), Case: 19-30388 Northbelt, LLC, 2020).
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