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Court Holds That Deposits Would Be Hypothetical

In a recent ruling, the Ninth Circuit held that bankruptcy courts may permissibly engage in "hypotheticals within hypotheticals" so long as the inquiry is factually warranted and is supported by appropriate evidence, and provided further that the hypothetical action would not contravene any other provision of the Bankruptcy Code.

9 minute read August 01, 2017 at 12:02 AM
By
Rudolph J. Di Massa Jr. and Chad E. Odhner
Court Holds That Deposits Would Be Hypothetical

A bankruptcy trustee may recover for the bankruptcy estate so-called “preferential transfers” – certain payments made by the debtor within 90 days before the commencement of a bankruptcy case.

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