Southern California Bankruptcy Law Blog

Monthly Archives: November 2012

Ipso Facto Clauses In Bankruptcy

Posted in Chapter 11, Chapter 13, Chapter 7

What is an ipso facto clause?  The phrase ipso facto is Latin for “by the fact itself.”  Ipso facto clauses are sometimes included in lease and purchase contracts, and they assert that if the lessee or purchaser becomes insolvent, or files for bankruptcy protection, then the contract has been breached.  In other words, under such… Continue Reading