Under certain situations, a bankruptcy trustee may try to recover transfers made by a debtor to creditors before the filing of his case.  These types of conveyances are termed “fraudulent conveyances.”  But does an innocent transferee, who had no knowledge of a debtor’s coming bankruptcy, have any way to prevent a trustee from recovering this kind of a transfer?  Under Section 548( c) of the Bankruptcy Code, a transferee can have an affirmative defense in such a situation.

Continue reading →