Executive Summary

Fraudulent transfer claims can significantly affect creditors during bankruptcy proceedings. This primer makes their underlying principles accessible to financial professionals.

Constructive claims focus on value received and the debtor’s financial condition. Actual claims instead examine whether the debtor intended to disadvantage creditors.

Successful claims require satisfaction of every applicable legal element. However, valuation disputes and transaction circumstances can complicate the analysis.

Defendants may rely on timing, good faith, and financial market protections. These defenses can influence litigation exposure and potential recoveries.

Recent liability management exercises create additional areas for fraudulent transfer scrutiny. Additionally, the primer examines drop downs and double dips through this framework.