Chapter 27 - § 27.6 • POST-PETITION TRANSFERS

• Jurisdiction: Colorado

§ 27.6 • POST-PETITION TRANSFERS

With certain exceptions, a trustee may avoid a transfer of property of the estate that occurs after the commencement of the case and either is authorized only under 11 U.S.C. § 303(f) (operation of business by debtor in involuntary case until order for relief) or § 542(c) (transfer to entity without actual notice or actual knowledge of commencement of case), or is not authorized by the Bankruptcy Act or by the court.¹²⁴ An exception exists in an involuntary case for a transfer made after the commencement of the case but before the order for relief to the extent of any value given after the commencement of the case in exchange for the transfer, notwithstanding any notice or knowledge of the case that the transferee has.¹²⁵ An exception also exists for a transfer of real property to a good faith purchaser without knowledge of the commencement of the case and for present fair equivalent value unless a copy or notice of the petition was filed in the real property records before such transfer is so perfected that a bona fide purchaser of the property, against whom applicable law permits such transfer to be perfected, could not acquire an interest that is superior to the interest of the good faith purchaser. A good faith purchaser without knowledge of the commencement of the case for less than present fair equivalent value has a lien on the property transferred to the extent of any present value given, unless a copy or notice of the petition was so filed before the transfer was perfected.¹²⁶

Three elements must be shown to permit the avoidance of a post-petition transfer: (1) the transfer of the property was a transfer of "property...