United States - Tax Issues in Consensual Debt Restructuring
- United States
- R. Scarborough; D. Caracristi
- Derivatives & Financial Instruments, 2012 (Volume 14), No 5
- 18 September 2012
This article considers the US tax consequences of restructuring debt outside bankruptcy. It is critical for both borrowers and lenders to take US federal income tax consequences into account in a restructuring, because, depending on how such a transaction is structured and other facts, those consequences may be favourable or adverse to either or both of the parties.