Fraudulent Transfers

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.

Supreme Court Holds that Real Estate Tax Foreclosures Can Violate the Takings Clause

The high court’s ruling on the Takings Clause also seems to mean that real estate tax foreclosures can be avoided as constructively fraudulent transfers.

LTL: Third Circuit Dismisses J&J Subsidiary Bankruptcy, Citing Lack of Financial Distress

July 2023

Section 546(g)'s Safe Harbor Doesn’t Apply in an Assignment for the Benefit of Creditors

A federal district judge in New York holds that the safe harbor in Section 546(g) doesn’t preempt state fraudulent transfer laws.

‘Preponderance’ Replaced ‘Clear and Convincing’ on Adoption of the Bankruptcy Code

The Seventh Circuit explained how preponderance of the evidence became the standard of proof for turnovers and dischargeability when the Bankruptcy Code replaced the Bankruptcy Act.

Benchnotes June 2023

June 2023