Undersecured Creditors Are Not Entitled to Opportunity Cost Payments Under 11 U.S.C. Section 362(d)(1) for the Delay Caused by the Automatic Stay of Foreclosure on Their Collateral: United Savings Association of Texas v. Timbers of Inwood Forest Associates, Ltd., ___ U.S. ___, 108 S. Ct. 626, 98 L. Ed. 2d 740 (1988)

Examines the Savings Association of Texas case in light of the issue of whether section 362(d)(1) required post-petition payments as a prerequisite to an undersecured lender being “adequately protested.” The Supreme Court held that United was not entitled to post-petition payments for its lost opportunity costs. The article further looks at adequate protection and section 362(d)(1) and how this decision may be followed by the bankruptcy courts.