The Long Arm of the Bankruptcy Court: Valuation in Fraudulent Transfer Matters

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Training Event Transcripts
March 29, 2022
Jeff L. Baliban, CPA/ABV, CFF, CDBV
economic damages & lost profits, bankruptcy
bankruptcy, fraudulent conveyance, fraudulent transfer, insolvency, constructive fraud, creditor


When a company files for bankruptcy, the first analysis is to determine what the company has and what the company owes as of the filing date. Next is a thorough analysis of what had been paid out of the company before the filing date to determine whether such payments can be clawed back into the estate for the benefit of creditors. Payments made within 90 days of the filing may automatically be considered preferential. Beyond the 90-day preference period, courts can look to avoid any transfers out of the company made or incurred within two years of the filing date if they were fraudulent or constructively fraudulent. Successful avoidance of constructively fraudulent transfers depends on various criteria, including whether the company “was insolvent on the date that such transfer was made or such obligation was incurred, or became insolvent as a result of such transfer or obligation” (see 11 U.S. Code § 548). Determining when a company became insolvent is a crucial issue in fraudulent transfer matters and is principally a valuation issue. Join Jeffrey Baliban for this session on the ins and outs of fraudulent transfers.
Valuation in Fraudulent Transfer Matters
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