Asked by Brittany Cates on Jun 15, 2024
Verified
A fraudulent transfer made more than one year prior to filing cannot be avoided by the trustee.
Fraudulent Transfer
The act of illegally transferring property to another party in order to evade creditors or the law.
Trustee
A trustee is an individual or organization that holds or manages property or assets for the benefit of another, usually under the terms of a trust agreement.
- Acquire insight into the operations and impacts of claims and debts within bankruptcy proceedings.
Verified Answer
CS
chinna sambaJun 19, 2024
Final Answer :
False
Explanation :
The Bankruptcy Code allows a trustee to avoid fraudulent transfers made within two years prior to the filing date, and under certain state laws (adopted through the Bankruptcy Code's § 544(b)(1)), this period can be extended beyond two years, often to four years or more.
Learning Objectives
- Acquire insight into the operations and impacts of claims and debts within bankruptcy proceedings.