Fraudulent Transfers

An Initial ‘Recipient’ of a Fraudulent Transfer Isn’t Always Liable Under § 550(a)(1)

The Second Circuit says that an initial ‘recipient’ isn’t automatically an initial ‘transferee’ liable for an avoidable transfer under Section 550(a)(1).

Mitigating Fraudulent Transfer Risk

Benchnotes June 2022

June 2022

Statutory Receiverships as Alternatives to Bankruptcy in Fraud Cases

Articles in theABI Journal, [1] committee newsletters [2] and conference materials [3] have been addressing various circumstances in which nonbankruptcy alternatives, such as receiverships and assignments for the benefit of creditors (ABC), offer strategic benefits to bankruptcy proceedings.

Circuit Split Widens Sovereign Immunity for Section 544(b) Claims

The circuits are now split 2/1 on the waiver of sovereign immunity under Section 544(b) for lawsuits by a trustee based on claims that could have been made by an actual creditor.

To Be a Section 544(b)(1) Predicate Claim for a 10-Year Lookback, the Claim Must Be Filed

A claim of the IRS can provide a 10-year lookback for avoidance actions, but the claim must have been filed.

Fraudulent Transfers to Revocable Trusts May or May Not Zap Homestead Exemptions

In Ohio, the debtor won’t lose the homestead exemption by transferring a home to a revocable trust.

Disregarding Scheduling Orders Can Waive Jury Trials and Objections to Final Orders

Sometimes, demanding a jury trial in answering a complaint comes too late to withdraw the reference.

Rule 11 Sanctions Coming for Madoff Customers Refusing to Give Up ‘Fictitious Profits’

Two district judges are becoming incensed by ‘net winners’ in the Madoff Ponzi scheme who continue litigating and losing on the same issues.

Benchnotes March 2022

March 2022