Sullivan v. Welsh, et al., No. 11-6018 (8th Cir. 2011)
Annotate this CaseThe Chapter 7 Trustee appealed from the Bankruptcy Court's judgment in favor of debtor's parents on a fraudulent transfer action, holding that debtor could not fraudulently transfer property that would have been exempt. Because the court concluded that the Bankruptcy Court erred in applying Minnesota fraudulent transfer law to the count seeking relief under section 548(a)(1)(B) of the Bankruptcy Code, the court reversed and remanded for further findings.
Court Description: Bankruptcy Appellate Panel. While state law determines the nature of a debtor's interest in property, it does not determine whether a transfer of that interest in fraudulent under Section 548 of the Bankruptcy Code; here, the bankruptcy court erred by failing to analyze the transfer of the debtor's property under the elements of Section 548; on remand, the court should make findings as to whether the debtor received less than reasonably equivalent value from her parents and whether she was insolvent at the time of the transfer or became insolvent as a result of the transfer.
Some case metadata and case summaries were written with the help of AI, which can produce inaccuracies. You should read the full case before relying on it for legal research purposes.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.