Bankruptcy Court Addresses the Distinction Between Direct Versus Derivative Claims

A Chapter 7 trustee may pursue any claims or causes of action, including avoidance actions to challenge post-petition transfers of property of the estate, that are property of a debtor’s estate. In a recent decision in the case of In re Genger, the U.S. Bankruptcy Court for the Southern District of New York addressed the distinction between direct claims versus derivative claims in the context of a post-petition release.

8 minute readMarch 01, 2026 at 12:11 AM
By
Lawrence J. Kotler
& Nathan Yeary
Bankruptcy Court Addresses the Distinction Between Direct Versus Derivative Claims

A Chapter 7 trustee may pursue any claims or causes of action, including avoidance actions to challenge post-petition transfers of property of the estate, that are property of a debtor’s

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