THE HEARTBREAK HOTEL REVISITED - HOTEL BANKRUPTCY AND SUGGESTED SOLUTIONS TO THE CONFUSION OVER THE HOTEL INCOME RECEIPTS ISSUE

The status of hotel receipts in a bankruptcy case has become a point o f increasing confusion for lenders in light of recent challenges to th e majority view regarding the treatment of an assignment of hotel rece ipts. The authors analyze these recent case law challenges and review recent state legislative measures that attempt to clarify this issue. The authors suggest possible Congressional actions that would address the treatment of hotel receipts as part of general Bankruptcy Code ref orms.