Fraudulent Transfers

Eleventh Circuit Reads Husky Narrowly, Perhaps Too Narrowly

Reading Husky narrowly, the Eleventh Circuit requires that fraud occur before a debt arises to make the debt nondischargeable under Section 523(a)(2)(A).

Second Circuit Upholds the Madoff Trustee’s Calculation of Fraudulent Transfer Claims

Fictitious profits in account statements don’t represent ‘value’ and give rise to a defense for receipt of a fraudulent transfer with ‘actual intent,’ the Second Circuit rules.

Fraudulent Transfer Law Doesn’t Victimize Innocent Parties, Judge Wiles Says

Ownership of a bank account isn’t enough by itself to make the account holder the initial transferee of a fraudulent transfer.

‘No Harm, No Foul’ Doesn’t Entitle a Debtor to a Discharge, BAP Says

Advice-of-counsel defense doesn’t work when intent is clearly fraudulent.

The Supreme Court, Dischargeability and Actual Fraud

Benchnotes October 2020

Oct 2020

Bankruptcy Court Alone May Decide Whether a Claim Is Estate Property, BAP Says

Bankruptcy Court Alone May Decide Whether a Claim Is Estate Property, BAP Says

Creditors Have Standing but Not Authority to Pursue Estate Claims, Third Circuit Says

Third Circuit’s Judge Bibas says that courts use the wrong nomenclature when they say that creditors lack standing to pursue claims belonging to the estate. It’s a question of statutory authority, he said, not standing.

Judge Romero Explains Why Lenders Can’t Claw Back Retainers Paid by Debtors

The UCC protects retainers in the hands of lawyers from secured lenders bent on glomming their collateral.

Bankruptcy and Business Valuation in the Current Environment

Oct 2020