Mark Douglas and Daniel Merrett, of Jones Day LLP, have made available for download their article, Another Court Adopts Majority View in Approving Bankruptcy Trustee’s Use of Tax Code Look-Back Period in Avoidance Actions, published in JDSUPRA. The abstract is as follows:
The ability of a bankruptcy trustee or chapter 11 debtor-in-possession (“DIP”) to avoid fraudulent transfers is an important tool promoting the bankruptcy policies of equality of distribution among creditors and maximizing the property included in the estate. One limitation on this avoidance power is the statutory “look-back” period during which an allegedly fraudulent transfer can be avoided—two years for fraudulent transfer avoidance actions under section 548 of the Bankruptcy Code and, as generally understood, three to six years if the trustee or DIP seeks to avoid a fraudulent transfer under section 544(b) and state law by stepping into the shoes of a “triggering” creditor plaintiff.
Posted by Jessica Ji, Associate Editor, Wealth Strategies Journal.