July 15, 2017
548(a) of the bankruptcy code is entitled: Fraudulent transfers and obligations. As we’ve discussed in previous blogs, the bankruptcy code is not there to serve only the consumer; it is designed to enforce the delicate balance between consumer and creditor rights. Section 548(a) is an important section of the code that often works in the interest of creditor rights. In short, 548(a) allows Trustees to avoid, or unwind, certain transactions where the debtor has attempted to evade a creditor by way of disposing, transferring, or otherwise hiding assets. In practice, this isn’t always as clear cut as it may seem.