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Can a Bankruptcy Trustee Claw Back Money From a Downstream Recipient? Section 550 After ONH
A bankruptcy trustee can reach past the person who took money straight from a failed business and sue whoever received it later. A recent Delaware decision holds the trustee must actually undo the original transfer, but does not have to sue that first recipient to do it. What it means for creditors chasing a recovery, and for anyone facing a clawback years after the deposit cleared: https://htx-legal.net/fraudulent-transfer-subsequent-transferee-section-550-onh-texas
The skinny
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