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Eighth Circuit Definitively Holds: Avoidance Actions Are Estate Property and Can Be Sold
Now a circuit judge, a former bankruptcy judge makes quick work of a troublesome issue about property of the estate.
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Bartenwerfer Doesn’t Apply if the Debtor Isn’t a Partner or Agent, Bankruptcy Judge Says
Bankruptcy Judge Klinette H. Kindred declined to expand Bartenwerfer by imputing fraud or larceny when the debtor wasn’t a partner or agent.
IRS Has No Sovereign Immunity to Bar a Fraudulent Transfer Suit Under Section 544(b)
The circuits are now split 3/1, with the majority finding a waiver of sovereign immunity under Section 544(b)(1) for lawsuits by a trustee based on claims that an actual creditor could not have brought outside of bankruptcy.
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If There’s No Diminution of the Estate, There’s No Preference or Fraudulent Transfer
Just because the debtor orchestrated a fraudulent transfer, the Seventh Circuit tells us there’s nothing for a trustee recover if there was no diminution of the estate.
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