The Curious Case of Extraterritoriality and Fraudulent Transfer Under the Bankruptcy Code

<i>Courts Are Divided on the Issue of Whether the Fraudulent Transfer Recovery Provision Applies Extraterritorially</i><p>The U.S. Court of Appeals for the Second Circuit recently issued an opinion concluding that trustees can pursue recovery from foreign subsequent transferees who received property in transactions that occurred entirely outside the United States. The opinion reversed two lower court rulings and arguably conflicts with Supreme Court precedent on extraterritoriality of U.S. legislation.

9 minute readJuly 01, 2019 at 12:05 AM
By
Rick Antonoff
The Curious Case of Extraterritoriality and Fraudulent Transfer Under the Bankruptcy Code

The fraudulent transfer provisions of the Bankruptcy Code give trustees broad power to avoid transfers of property that were made by the debtor before the bankruptcy case if either: 1)

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