The Bankruptcy Court for the Southern District of New York held recently that § 550 of the Bankruptcy Code does not limit the potential recovery on fraudulent transfer claims to the amount of unpaid creditor claims against a debtor’s estate. According to the Court, the language in § 550(a) that states that a plaintiff in an avoidance action can recover the property transferred or the value of the property “for the benefit of the estate” provides a “floor” rather than a “ceiling” on recovery.
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