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Excerpt from Practical Guidance

Expert Analysis

Understanding Fraudulent Transfers And Ensuing Litigation

Law360, New York (July 2, 2014, 11:32 AM EDT) -- A transfer of the debtor's property to another party in order to deter, hinder or defraud a creditor, or to unfairly place such property out of the reach of a creditor is a fraudulent transfer. In bankruptcy cases, a trustee is given the power to set aside or avoid these transfers under either federal law or state law. Section 548 of the Bankruptcy Code provides for the federal statutory basis to challenge fraudulent transfers. Section 544 of the Bankruptcy Code provides for the basis to challenge fraudulent transfers under applicable state statutory law....

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