Section 548 Bankruptcy Code

It is very important to know that in bankruptcy the primary tool for dealing with a debtor s late transfers are the provisions dealing with preferential transfers in contrast to state law where the.

Section 548 bankruptcy code. Section 548 largely sets out the substantive law of fraudulent transfers in bankruptcy while 550 sets out the defenses of the transferee and some limitations upon fraudulent transfer actions in bankruptcy. In particular section 548 d 2 b of the house amendment makes clear that a commodity broker who receives a margin payment is considered to receive the margin payment in return for value for purposes of section 548. Section 548 c of the bankruptcy code provides transferees subject to fraudulent conveyance actions with an affirmative defense if they received the transfer for value and in good faith.

Bankruptcy code 548 is a heavily litigated bankruptcy code provision. Findlaw codes are provided courtesy of thomson reuters westlaw the industry leading online legal research system. The bankruptcy code in section 548 enables a trustee or a party with derivative rights such as a debtor in possession chapter 11 trustee or a creditor s committee to avoid any transfers of an interest of the debtor in property or obligation incurred by the debtor that was made or incurred within 2 years before the petition date when it involves either actual or constructive fraud.

As with any affirmative defense the transferee bears the burden of proof. Bankruptcy code 548 11 usc 548 fraudulent transfers and obligations. On its face bankruptcy code sections 544 548 and 550 make no reference to geographic limitations to the avoidance of transfers and they all allow for the recovery of property or the value of property to the extent transfers are avoidable under section 548.

548 a 2 west 1979 pamphlet no. Section 548 fraudulent transfers and obligations 2019 u s. Bankruptcy code 548 c provides a transferee the recipient of an alleged fraudulent conveyance with an affirmative defense.

Section 548 d 2 is modified to reflect general application of a provision contained in section 766 of the senate amendment with respect to commodity brokers.