Court Holds that Trustee May Avoid Transfers Occurring up to 10 Years Prior to Petition Date by Stepping into Shoes of IRS Pursuant to 11 U.S.C. § 544(b) [American Bankruptcy Institute Unsecured Trade Creditors Committee Newsletter]

Simon Fraser, a member of Cozen O’Connor’s Bankruptcy, Insolvency & Restructuring Practice Group, discusses a recent court decision in the American Bankruptcy Institute’s Unsecured Trade Creditors Committee Newsletter. Simon explains that the decision in Mukamal v. Kipnis, “Is the latest in a small-but-growing line of cases holding that a trustee may invoke the IRS’s 10-year look-back period for avoiding fraudulent transfers in any case in which the IRS is an unsecured creditor.” He adds that since the period provided by most state statues is only four years, “this certainly would be a powerful new ‘reach back weapon’ as the court described it, for trustees.”

For additional information, click here (login required).

Share Page On LinkedIn

Related Attorneys

Simon E. Fraser


(302) 295-2011

Related Practices