• When such a lease is discovered, the property is treated as part of the bankruptcy estate, meaning that to defeat competing creditors, the lessor must have perfected a security interest. [Cases: Bankruptcy 3101; Secured Transactions 10. C.J.S. Bankruptcy §§ 108, 117; Secured Transactions§§ 3, 7, 22–33.]
disguised installment sale
Bankruptcy. A debtor’s leasing ploy to try to keep property outside the bankruptcy estate, whereby a lease either presents the lessee-debtor with a bargain purchase option or transfers title to the lessee-debtor at the end of the lease term.
