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Daily Archives: Thursday, November 23, 2017

Posted: November 23, 2017

If a Debtor Controls Funds Escrowed to Pay Specific Creditors, Those Funds Are Subject to Other Creditors’ Claims

On November 15, 2017, the Second Department issued a decision in Freedman v. Hason, 2017 NY Slip Op. 07977, holding that even if a debtor escrows funds to pay specific creditors, those funds are subject to the claims of other creditors if the debtor retains control of the funds, explaining: Hason’s contention that the proceeds… Read more »