Section 548 Of The Bankruptcy Code

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.

Section 548 of the 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. Bankruptcy code 548 11 usc 548 fraudulent transfers and obligations. 109 8 inserted an interest in after transfer of in two places and substituted purchaser of such real property for purchaser of such property and such interest for the interest.

Notwithstanding sections 544 545 547 548 a 1 b and 548 b the trustee may not avoid a transfer made by or to or for the benefit of a master netting agreement participant under or in connection with any master netting agreement or any individual contract covered thereby that is made before the commencement of the case except under section 548 a 1 a and except to the extent that the trustee could otherwise avoid such a transfer made under an individual contract covered by such. Mar 18 2014. Section 547 b 2 of the house amendment adopts a provision contained in the house bill and rejects an alternative contained in the senate amendment.

Fraudulent transfers and obligations on westlaw. For more detailed codes research information including annotations and citations please visit westlaw. No limitation is provided for payments to commodity brokers as in section 766 of the senate amendment other than the amendment to section 548 of title 11.

As with any affirmative defense the transferee bears the burden of proof. Section 548 a 2 of the bankruptcy code the bankruptcy code the code 9 gives the trustee in bank ruptcy10 the power to avoid as fraudulent conveyances certain 7 11 u s c a. Findlaw codes are provided courtesy of thomson reuters westlaw the industry leading online legal research system.

Contributed by christopher hopkins. 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. 548 a 2 west 1979 pamphlet no.

103 394 inserted the trustee may not avoid under subsection a of this section after involuntary. Section 547 c 2 protects most payments.