Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Is There Standing to Prosecute Fraudulent Transfer Claims if Unsecured Creditors Have Been Fully Paid?
The answer to this question depends, in part, on where the debtor's case is pending. In the Second Circuit, courts allow defendants to escape exposure to fraudulent transfer actions if the debtor's estate cannot identify at least one general unsecured creditor who would benefit from a recovery in that litigation. In contrast, courts in the Fifth, Eighth and Ninth Circuits hold that a debtor's estate has standing to bring such claims, even after all allowed claims of general unsecured creditors have been paid in full, if the estate as a whole would benefit, for example through the payment of professional fees and other administrative expenses of the estate. It is unclear whether this split among the Circuit Courts of Appeal will affect the conduct of debtors and creditors in order to influence the outcome of avoidance actions brought by or against them.
Contexts in Which This Issue Arises
In re Petters Co., Inc., 495 B.R. 887 (Bankr. D. Minn. 2013) exemplifies one context in which this issue appears. There, the Chapter 11 bankruptcy trustee had commenced more than 200 adversary proceedings to recover for the estate allegedly fraudulent transfers made in connection with a Ponzi scheme. In its pleadings, the trustee stated generally that at all material times, there existed at least one creditor who held an unsecured claim, and that the challenged transfers “are avoidable under applicable nonbankruptcy law by a creditor holding an unsecured claim in the bankruptcy case.” See Petters, 495 B.R. at 896.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
Yachts, Jets, Horses & Hooch: Specialized Commercial Leasing Models
Defining commercial real estate asset class is essentially a property explaining how it identifies — not necessarily what its original intention was or what others think it ought to be. This article discusses, from a general issue-spot and contextual analysis perspective, how lawyers ought to think about specialized leasing formats and the regulatory backdrops that may inform what the documentation needs to contain for compliance purposes.
Hyperlinked Documents: The Latest e-Discovery Challenge
As courts and discovery experts debate whether hyperlinked content should be treated the same as traditional attachments, legal practitioners are grappling with the technical and legal complexities of collecting, analyzing and reviewing these documents in real-world cases.
Identifying Your Practice's Differentiator
How to Convey Your Merits In a Way That Earns Trust, Clients and Distinctions Just as no two individuals have the exact same face, no two lawyers practice in their respective fields or serve clients in the exact same way. Think of this as a "Unique Value Proposition." Internal consideration about what you uniquely bring to your clients, colleagues, firm and industry can provide untold benefits for your law practice.
Risks and Ad Fraud Protection In Digital Advertising
The ever-evolving digital marketing landscape, coupled with the industry-wide adoption of programmatic advertising, poses a significant threat to the effectiveness and integrity of digital advertising campaigns. This article explores various risks to digital advertising from pixel stuffing and ad stacking to domain spoofing and bots. It will also explore what should be done to ensure ad fraud protection and improve effectiveness.
Turning Business Development Plans Into Reality
This article offers practical insights and best practices to navigate the path from roadmap to rainmaking, ensuring your business development efforts are not just sporadic bursts of activity, but an integrated part of your daily success.