Bankruptcy Code §548(a)(1) contains the Bankruptcy Code fraudulent conveyance statute. 11 U.S.C. §548(a)(1). Bankruptcy Code §548(a)(1)(A) governs intentional fraudulent conveyances: those transfers made by a transferor with actual intent to hinder, delay, or defraud creditors. 11 U.S.C. §548(a)(1)(A). Bankruptcy Code §548(a)(1)(B) governs constructive fraudulent conveyances: those transfers made by a transferor for which the estate was not provided with reasonably equivalent value and left the estate without sufficient assets to pay its creditors. 11 U.S.C. §548(a)(1)(B). Bankruptcy trustees frequently commence fraudulent conveyance actions. Bankruptcy Code §548 is a heavily litigated Bankruptcy Code provision.
Bankruptcy Code §548(c) provides a transferee, the recipient of an alleged fraudulent conveyance, with an affirmative defense to the fraudulent conveyance action. Bankruptcy Code §548(c) states:
