We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

Defending Avoidance Actions With Solvency

Law360 (February 8, 2008, 12:00 AM EST) -- Recent bankruptcy decisions have highlighted the role of market evidence in measuring the solvency of bankruptcy debtors.

Debtors in bankruptcy (and trustees or unsecured creditors' committees acting on behalf of a bankruptcy estate) often invoke the Bankruptcy Code's avoidance powers – generally, the fraudulent transfer and preference provisions – to demand the return of certain payments and other transfers made before a bankruptcy filing, typically for redistribution to the unsecured creditors of the bankruptcy estate on a pro rata basis.

In most cases, however, the recipient...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.