Lease Terminations As Fraudulent Transfers

Is an insolvent debtor's pre-bankruptcy termination of a commercial lease a fraudulent transfer? The circuit courts seem to be split, however a close reading of cases in the Third and Seventh Circuits shows that the reasoning of both courts can be reconciled on their facts.

6 minute readJune 01, 2023 at 12:07 AM
By
Michael L. Cook
Lease Terminations As Fraudulent Transfers

Is an insolvent debtor's pre-bankruptcy termination of a commercial lease a fraudulent transfer? The Third Circuit said no when it held that a lessor's pre-bankruptcy termination of the debtors' lease

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