Jeffrey Reisner Comments on Supreme Court's Husky Ruling in Law360
Jeffrey Reisner discussed the significance of the U.S. Supreme Court decision in Husky International Electronics Inc. v. Ritz in Law360 on March 16:
“The Bankruptcy Code has always 'prohibited' actual fraudulent transfers. Not only may the transfers be recovered and damages pursued, but a discharge of all claims that arose within the year preceding the bankruptcy may be denied on this basis. Today's decision also makes a specific debt nondischargeable for a materially longer period of time. In addition, the ruling affects the party likely to pursue nondischargeability. Individual creditors normally seek only to have their debts declared nondischargeable to avoid dilution of available assets once the bankruptcy case ends. Now the creditor may pursue nondischargeability of his debt alone when confronting actual fraudulent transfers."
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