Follow Us

Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Bankruptcy Litigation

10th Circuit Looks At Nuances of Challenging Fraudulent Conveyance

Under the Bankruptcy Code, not only can the initial recipient of a fraudulent conveyance be held liable, but so too can a subsequent transferee. However, there can be important nuances in the challenged transaction that may provide a subsequent transferee with a substantial defense.

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Under the Bankruptcy Code, not only can the initial recipient of a fraudulent conveyance be held liable, but so too can a subsequent transferee. However, there can be important nuances in the challenged transaction that may provide a subsequent transferee with a substantial defense. One of those nuances was recently identified by the U.S. Court of Appeals for the Tenth Circuit, which highlighted the difference between the receipt of the asset which was fraudulently conveyed and the proceeds of such asset. See, Rajala v. Spencer Fane (In re Generation Resources Holding), 2020 U.S. App. LEXIS 21454 (10th Cir. July 10, 2020).

To continue reading,
become a free ALM digital reader

Benefits include:

*May exclude premium content

Read These Next