avoidable transfers

avoidable transfers
avoidable transfers
The debtor in possession or the trustee, as the case may be, has what are called "avoiding" powers. Such powers may be used to undo a transfer of money or property made during a certain period of time prior to the filing of the bankruptcy petition. By avoiding a particular transfer of property, the debtor in possession can cancel the transaction and force the return or "disgorgement" of the payments or property, which then are available to pay all creditors. Generally, the power to avoid transfers is effective against transfers made within 90 days prior to the filing of the petition. However, transfers to insiders (i.e., relatives, general partners, and directors or officers of the debtor) made up to a year prior to filing can be avoided. 11 U.S.C. §§ 101(31), 101(54), 547, 548. In addition, under 11 U.S.C. § 544, the trustee is given the authority to avoid transfers under applicable state law, which often provides for longer time periods. Avoiding powers are used, for example, to prevent unfair prepetition payments to one creditor at the expense of all other creditors. (BankruptcyAction.com)

United Glossary of Bankruptcy Terms 2012.


Glossary of Bankruptcy.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • avoidable — index needless, nonessential, unnecessary Burton s Legal Thesaurus. William C. Burton. 2006 avoidable …   Law dictionary

  • avoidable transfer — USA avoidable transfer, Also known as avoidable. Certain transfers of property made before bankruptcy which may be set aside under the Bankruptcy Code, such as preferences and fraudulent transfers, and recovered for the benefit of an estate to… …   Law dictionary

  • denial of discharge — Penalty for debtor misconduct with respect to the bankruptcy case or creditors as a whole. The grounds on which the debtor s discharge may be denied are found in 11 U.S.C. 727. When the debtor s discharge is denied, the debts that could have been …   Glossary of Bankruptcy

  • Air ambulance — A Eurocopter EC 145 of Switzerland s Rega air rescue service. An air ambulance is an aircraft used for emergency medical assistance in situations where either a traditio …   Wikipedia

  • Pension Benefit Guaranty Corporation — (United States) Agency overview Formed September 2, 1974 …   Wikipedia

  • Texas — This article is about the U.S. state. For other uses, see Texas (disambiguation). State of Texas …   Wikipedia

  • Pension — This article is about the retirement income arrangement. For the type of lodging, see Pension (lodging). For the mortgage repayment scheme, see Mortgage loan. Financial market participants …   Wikipedia

  • Characters from the Incarnations of Immortality — This article contains brief biographies for major characters from Piers Anthony s Incarnations of Immortality series. The protagonist of each book in the series, as well as some other major characters, are listed here.The IncarnationsZane On a… …   Wikipedia

  • Italy — /it l ee/, n. a republic in S Europe, comprising a peninsula S of the Alps, and Sicily, Sardinia, Elba, and other smaller islands: a kingdom 1870 1946. 57,534,088; 116,294 sq. mi. (301,200 sq. km). Cap.: Rome. Italian, Italia. * * * Italy… …   Universalium

  • postal system — System that allows persons to send letters, parcels, or packages to addressees in the same country or abroad. Postal systems are usually government run and paid for by a combination of user charges and government subsidies. There are early… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”