Jason Rodriguez authors “A Loophole Big Enough to be a Wormhole” for Lenders 360

Jason Rodriguez authors a blog at lenders360blog.com. Read the post below.

Like most bank defendants, Key Bank was looking for the quickest way out of a $5 million fraudulent transfer lawsuit brought by a chapter 7 Trustee. Rather than wait to win in the standard path of arguing facts, the bank relied on the broad and powerful “safe harbor” provision of the bankruptcy code which protects certain transfers from recovery. In doing so, the bank utilized a technical, but effective, argument to avoid the need for trial and simply exit the case where it entered…

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