avoidance powers

avoidance powers

Rights given to the bankruptcy trustee or the debtor-in-possession to recover certain transfers of property such as preferences or fraudulent transfers or to void liens created before the commencement of a bankruptcy case (SA-Bankruptcy.com)

Rights given to the bankruptcy trustee (or the debtor in possession in a Chapter 11) to recover certain transfers of property such as preferences or fraudulent transfers or to void liens created before the commencement of a bankruptcy case. (Bankruptcy in Brief)

Rights given to the trustee or the debtor in possession to recover select transfers of property made prior to the filing of the bankruptcy case. If the recovered assets are not liquid, the assets will then be sold at a public auction and the funds from the sale may be used to pay creditors.

These powers include the ability to recover property that was the subject of a fraudulent transfer or preferential transfer by the debtor prior to the filing. A lien may also be avoided to the extent it interferes with a debtor's exemptions.

see avoidance of lien (Bernstein's Dictionary of Bankruptcy Terminology)

United Glossary of Bankruptcy Terms 2012.

avoidance powers

Rights given to the trustee or the debtor in possession to recover select transfers of property made prior to the filing of the bankruptcy case. If the recovered assets are not liquid, the assets will then be sold at a public auction and the funds from the sale may be used to pay creditors. These powers include the ability to recover property that was the subject of a fraudulent transfer or preferential transfer by the debtor prior to the filing. A lien may also be avoided to the extent it interferes with a debtor’s exemptions. see avoidance of lien

US Bankruptcy 2012.