Section 6.25 Fraudulent Transfers—11 U.S.C. § 548

• Library: Bankruptcy Practice (2007 Ed. + 2015 Cum Supp)

III. (§6.25) Fraudulent Transfers—11 U.S.C. § 548

A debtor is prohibited from transferring their assets to a third party with the actual or constructive intent of obstructing creditors from reaching the debtor’s assets to satisfy their claims. Michael L. Cook, Fraudulent Transfer Liability Under the Bankruptcy Code, 17 Hous. L. Rev. 263 (1980). A fraudulent transfer has the effect of diminishing the assets available in the debtor’s estate to satisfy the claims of creditors. Under 11 U.S.C. § 548(a) of the Bankruptcy Code, 11 U.S.C. §§ 101 et seq., the trustee has the power to avoid any fraudulent transfer of the debtor’s interest in property or the fraudulent incurring of...