Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Thank you for your question. I am happy to assist you.
The trustee's power to bring the action tto void the transfer may be time barred by the statute of limitations. You will want to retain a bankruptcy attorney to raise this defense.
The trustee in bankruptcy court has the power to void certain transaction made by the debtor prior to filing bankruptcy. One such transaction subject to the trustee's voiding power is called a "preferential transfer".
Section 547 of the Bankruptcy Code provides that the trustee may avoid transfers of the debtor's interest in property:
However, Section 546 of the Bankruptcy Code limits the time in which an action to void a preferential transfer may be brought as follows:
(a) An action or proceeding under section 544, 545, 547, 548, or 553 of this title may not be commenced after the earlier of--
(1) the later of--
(A) 2 years after the entry of the order for relief; or
(B) 1 year after the appointment or election of the first trustee under section 702, 1104, 1163, 1202, or 1302 of this title if such appointment or such election occurs before the expiration of the period specified in subparagraph (A); or
(2) the time the case is closed or dismissed.
In summary, the trustee cannot bring an action to void a preference if it is barred by the statute of limitations. You will want to retain a bankruptcy attorney to raise this defense
I hope that the information which I provided was helpful to you.
Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.
Thank you, FLAandNYLAWYER
Please hit ACCEPT so that I can get credit for my work
Bonuses and Positive Feedback gratefully accepted!
THIS IS FOR INFORMATION ONLY. NO ATTORNEY-CLIENT RELATIONSHIP EXISTS. PLEASE CONSULT A LAWYER IN YOUR STATE FOR LEGAL ADVICE
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).