§ 50.4 — Avoidance Powers after BAPCPA

Revised: July 3, 2007

[1]

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 made many changes to the provisions of Chapter 5 of the Bankruptcy Code that define a trustee’s avoidance and recovery powers. With a few exceptions, the changes are “technical” and address issues that rarely arise in consumer bankruptcy cases. For example, § 546(c) has been amended to enlarge from 10 days to 45 days the time within which a seller of goods can demand reclamation. With the possible exception of Chapter 13 debtors engaged in business,1 reclamation is seldom seen in consumer cases. The same is true for the new category of administrative expense in § 503(b)(9) which permits a seller of goods to claim an administrative expense for goods received by the debtor within 20 days before the petition if sold to the debtor in the ordinary course of the debtor’s business.2

[2]

Somewhat more extensive changes to preference recovery under § 547 and fraudulent conveyance avoidance under § 548 are discussed below.3 The changes by BAPCPA to avoidance and recovery powers will only marginally affect Chapter 13 practice for debtors or trustees.


 

1  See §§ 57.1 [ Operating a Chapter 13 Debtor Engaged in Business ] § 52.1  Operating a Chapter 13 Debtor Engaged in Business and 413.1 [ New Issues for Debtors Engaged in Business ] § 52.3  Debtors Engaged in Business after BAPCPA.

 

2  See 11 U.S.C. § 503(b)(9), discussed in § 523.1 [ Miscellaneous Administrative Expenses and Priority Claims ] § 136.15  Miscellaneous Administrative Expenses and Priority Claims after BAPCPA.

 

3  See 11 U.S.C. § 547, discussed in § 411.1 [ Preferences ] § 50.5  Preferences after BAPCPA, and 11 U.S.C. § 548, discussed in § 412.1 [ Fraudulent Transfers ] § 50.6  Fraudulent Transfers after BAPCPA.