Clawback (avoidance action)
Definition
A lawsuit brought by the trustee to recover assets or payments that left the estate before bankruptcy. The trustee's avoidance powers are the legal mechanism behind clawback actions.
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- UNCITRAL Model Law
- The UNCITRAL Model Law on Cross-Border Insolvency (1997), a template for coordinating insolvency proceedings across borders. Countries that adopt it (including the...
Explained in
- Bankruptcy and Insolvency FraudA lawsuit brought by the trustee to recover assets or payments that left the estate before bankruptcy. The trustee's avoidance powers are the legal mechanism b...