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How to Use State Fraudulent Transfer Law to “Claw Back” Certain Prebankruptcy Payments
Bragança Law LLC

In a bankruptcy proceeding, trustees can use state fraudulent transfer law to “claw back” certain prebankruptcy payments made by the debtor. Those funds are then available for distribution to creditors as part of the debtor’s estate. The Ninth Circuit Court of Appeals recently held that the IRS is not exempt from these clawback claims. In re…

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