Recent Wisconsin Decision Showcases The Avoidance Powers Of A Receiver When Debtor's Name Is Not Precisely Shown
LexisNexis (May 3, 2018, 10:41 AM EDT) -- Trustees in bankruptcy delight in wiping out security interests under their avoidance powers, particularly the strongarm clause found in Section 544 of the Bankruptcy Code and the voidable preference provision found in Section 547. In a recent decision from Wisconsin, there was no trustee in bankruptcy to exercise avoidance powers, but a receiver flexed its muscles, to the same effect.
The Wisconsin case. In United States SEC v. ISC, Inc., 2017 U.S. Dist. LEXIS 139258, 93 UCC Rep. 2d 729 (W.D. Wis. 8/30/17), the receiver filed...