Fraudulent Transfers

Fraudulent Transfer Suit Does Not Require Injury to Creditors, Circuit Says

A trustee has standing and a claim for fraudulent transfer just because a fraudulent transfer erodes assets of the bankrupt estate.

Court :

9th Circuit

Second Circuit Allows Sale of ‘General’ Claims Subject to a Creditor’s Disputed Lien

Second Circuit leaves open the question of whether a trustee can sell a ‘general’ or ‘derivative’ claim that’s subject to a valid lien held by a creditor.

Court :

2nd Circuit

Ninth Circuit Upholds the ‘Ponzi Scheme’ Presumption over a Dissent

A Ninth Circuit dissenter would require the trier of fact to make a finding that the fraudster acted with actual intent to defraud.

Court :

9th Circuit

Imputed Knowledge Kills the Good Faith Defense of a Subsequent Transferee, Circuit Says

Criminal activities of an agent don’t take the agent’s actions outside of the scope of authority.

Court :

5th Circuit

Benchnotes October 2024

Oct 2024

Bankruptcy Code

11 U.S.C. § 363(f)

the Debtor and the Estate›Subchapter II - Debtor's Duties and Benefits›522

the Debtor and the Estate›Subchapter III - The Estate›541

1329

11 U.S.C.A. § 544(b); 11 U.S.C.A. § 548; 11 U.S.C.A. § 550;

9019

Topic Tags

Asset Sales

Bankruptcy Litigation

Fraudulent Transfers

Plan Confirmation

Practice and Procedure

Consumer Debt

Business Reorganization

SEC Issues

Supreme Court’s Jarkesy Opinion Clarifies Granfinanciera on Jury Trial Rights

A Supreme Court nonbankruptcy decision means there is no right to a jury trial in the claims-allowance process in bankruptcy.

Court :

Supreme Court

Tyler Applied Retroactively to Set Aside a Judgment of Tax Foreclosure

Tyler was applied retroactively because the debtor’s efforts to set aside a tax foreclosure judgment were ‘in the pipeline’ when bankruptcy began.

Court :

3rd Circuit

New Jersey

BAP Holds that Nondischargeability for Actual Fraud Requires Justifiable Reliance

The Tenth Circuit BAP inferred a requirement of justifiable reliance on nondischargeability for actual fraud.

Court :

10th Circuit

Supreme Court to Rule on Waiver of Sovereign Immunity for Suits Under Section 544(b)(1)

To resolve a circuit split, the Supreme Court has agreed to decide whether a trustee can sue the government to recover a fraudulent transfer under state law when sovereign immunity would bar an ‘actual creditor’ from suing.

Court :

Supreme Court

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