Fraudulent Transfers

“In Rem Relief” as Commandeering? Perspectives from Haaland

Oct 2023

Bartenwerfer Doesn’t Apply if the Debtor Isn’t a Partner or Agent, Bankruptcy Judge Says

Bankruptcy Judge Klinette H. Kindred declined to expand Bartenwerfer by imputing fraud or larceny when the debtor wasn’t a partner or agent.

IRS Has No Sovereign Immunity to Bar a Fraudulent Transfer Suit Under Section 544(b)

The circuits are now split 3/1, with the majority finding a waiver of sovereign immunity under Section 544(b)(1) for lawsuits by a trustee based on claims that an actual creditor could not have brought outside of bankruptcy.

If There’s No Diminution of the Estate, There’s No Preference or Fraudulent Transfer

Just because the debtor orchestrated a fraudulent transfer, the Seventh Circuit tells us there’s nothing for a trustee recover if there was no diminution of the estate.

Benchnotes August 2023

Aug 2023

Trustee Admonished for Filing Suit Reflecting a ‘Disturbing Lack of Judgment’

Providing an adult child with room and board in the family home is not a fraudulent transfer.

Bartenwerfer Isn’t at Odds with Husky, According to Bankruptcy Judge Margaret Mann

A transferor’s fraudulent intent isn’t imputed to the transferee to make the transferee’s debt nondischargeable for ‘actual fraud.’

Circuit Splits & Hot Topics with Bill Rochelle

Recent Issues with Fraudulent Transfers and Preferences

District Judge Reads the Safe Harbor Broadly to Immunize a Leveraged Buyout

Although a stock purchase and a loan payoff were one month apart, a district judge in Indiana found a sufficient nexus to invoke the safe harbor and dismiss a fraudulent transfer suit.