You are here

In re Greenwood (Case No. 07-62155) 3/14/2008

The Court denied a creditor’s motion to prosecute fraudulent conveyance actions on behalf of the estate under 11 U.S.C. § 548.  Section 548 grants trustees the authority to avoid fraudulent transfers and obligations.  The Bankruptcy Code does not expressly grant creditors "derivative standing" to initiate avoidance actions.  The Fourth Circuit has twice declined to decide whether the doctrine of derivative standing exists and the creditor did not provide a strong argument that such standing should be recognized.

Date: 
Friday, March 14, 2008
Category: 
Avoidance
Fraudulent Conveyance
Standing
Chapter: 
11