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Expert Analysis

5th Circ. Flugence Case May Sway Section 550(a) Readings

Law360, New York (December 4, 2013, 8:26 AM EST) -- On Nov. 22, 2013, the United States Court of Appeals for the Fifth Circuit issued a decision permitting a Chapter 13 trustee to pursue personal injury defendants for amounts exceeding the total amount owed to all creditors in the case, notwithstanding that the debtor herself was judicially estopped from seeking any recoveries from the defendants.[1] The decision is important because of its implications for other instances in which litigation is commenced for the purpose of making creditors whole, but which may nonetheless produce recoveries in excess of the amount necessary to do so....

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