Tag Archives: Forbearance

Court Determines That Ending Forbearance Does Not Equate to Economic Duress

If a lender ends a forbearance agreement, does that equate to bringing economic distress to the borrower? Reed Smith’s Brian Schenker summarizes the case and court findings in Interpharm Inc. vs. Wells Fargo Bank, N.A., 655 F.3d 136 (2d Cir. 2011) to show how the lender did not exceed the borrower’s rights under their established agreements and what it means for similar borrowers in the same situation.