Bona Fide Dispute

If certain conditions are satisfied, the debtor may sell assets free and clear of existing liens and other interests, with any liens or interests attaching to the proceeds of the sale. One of the situations where this is permitted is when a lien or interest is “in bona fide dispute.” A bona fide dispute is one that is backed by a good faith, colorable argument.

Bankruptcy Code § 363(f)(4). See also 363 Auction, 363 Sale, Sale Free and Clear.

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