Fraudulent-Transfer Litigants Beware: The Statutory Limitations and Reach-Back Periods May Be Broader than You Think
Richard Levy, co-chair of Pryor Cashman’s Bankruptcy Group, has authored an article entitled, “Fraudulent-Transfer Litigants Beware: The Statutory Limitations and Reach-Back Periods May Be Broader than You Think,” which was published in the September, 2011 issue of the American Bankruptcy Institute Commercial Fraud Task Force Committee Newsletter.
The article addresses bankruptcy litigators whom undoubtedly are familiar with the provisions of the Bankruptcy Code that establish the “limitations period” within which a trustee must commence actions to avoid transfers as fraudulent conveyances, and the “reach-back period” within which pre-bankruptcy transfers by the debtor may be subject to avoidance under the Bankruptcy Code or incorporated state law remedies.
Although these statues seemingly establish bright-line boundaries for the commencement of avoidance proceedings and for determining the pre-petition period within which transactions may be subject to attack by an avoidance complain, Levy notes that it is important for practitioners to recognize that neither of these time periods is necessarily as ironclad as statutory language might suggest.
To read the entire article, please click here.
