Blawgletter has the Vague Notion that bankruptcy law dislikes some kinds of contract clauses. Take your ipso factos, which trigger some change in the contract's status simply because a party filed for bankruptcy relief. Don't laws that aim to treat creditors fairly tend to frown on such efforts to get a Leg Up as
Trustee of Junky Debt Earned Contingent Fee, Second Circuit Rules; Timing Is Everything
The hey-day for exotic bets on credit risk spanned most of the first decade of the 21st century. The popping of the housing bubble in 2008 did it in. People lost homes that they bought with debt they couldn't repay; and plenty of investors watched in horror as the value of the junk they'd bought — collateralized debt