Fraudulent Transfers

SCOTUS’s Latest Proclamation on the Limits of Sovereign Immunity

May 2025

Bankruptcy Code

Topic Tags

Estimated Tax Payments Made Before Filing Aren’t Fraudulent Transfers to the IRS

When estimated tax payments are ‘reasonable’ estimates of the year’s taxes, they aren’t fraudulent transfers, district judge says

Court :

5th Circuit

Texas

Texas Western District

Supreme Court Holds: § 106(a) Doesn’t Waive Sovereign Immunity for § 544(b) Suits

In an 8-1 opinion, the Supreme Court holds that the waiver of sovereign immunity under Section 106(a) does not extend to suits brought by a trustee under state law standing in the shoes of an actual creditor.

Court :

Supreme Court

For Fraudulent Transfers, Retailers Needn’t Police Who Receives Value from the Purchase

Judge Peter Henderson declined to adopt an interpretation of Section 548 that would turn innocent retailers into recipients of fraudulent transfers when someone buys goods but turns the goods over to someone else.

Court :

7th Circuit

Illinois

Illinois Central District

Debtors Have a Narrow Window in ‘13’ to Redeem Foreclosed Property, BAP Says

Because a right of redemption does not give rise to a claim, Section 1322(b) doesn’t enable a debtor to redeem foreclosed property when the right of redemption has expired.

Court :

9th Circuit

Fourth Circuit Upholds a $31 Million Default Judgment for Discovery Abuses

Long Island’s Judge Grossman warns lawyers that they may be paid nothing if they file chapter 11 cases just to delay a secured creditor, with no legitimate strategy for selling the property, refinancing or confirming a plan.

Court :

4th Circuit

A Transfer from the Debtor to a Constructive Trust Isn’t a Transfer of Debtor’s Property

If there’s a constructive trust on property in the debtor’s name, the debtor was only the trustee of the constructive trust and had no legal interest in the property.

Court :

3rd Circuit