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11 U.S.C. § 550 — Liability of transferee of avoided transfer
Federal law — U.S. Code and appendices · legal_authorities
**(a)** Except as otherwise provided in this section, to the extent that a transfer is avoided under section 544, 545, 547, 548, 549, 553(b), or 724(a) of this title, the trustee may recover, for the benefit of the estate, the property transferred, or, if the court so orders, the value of such property, from—
(1) the initial transferee of such transfer or the entity for whose benefit such transfer was made; or
(2) any immediate or mediate transferee of such initial transferee.
**(b)** The trustee may not recover under section 11 So in original. Probably should be “subsection”. (a)(2) of this section from—
(1) a transferee that takes for value, including satisfaction or securing of a present or antecedent debt, in good faith, and without knowledge of the voidability of the transfer avoided; or
(2) any immediate or mediate good faith transferee of such transferee.
**(c)** If a transfer made between 90 days and one year before the filing of the petition—
(1) is avoided under [section 547(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section547/b&num=0&edition=prelim); and
(2) was made for the benefit of a creditor that at the time of such transfer was an insider;
the trustee may not recover under subsection (a) from a transferee that is not an insider.
**(d)** The trustee is entitled to only a single satisfaction under subsection (a) of this section.
**(e)**
(1) A good faith transferee from whom the trustee may recover under subsection (a) of this section has a lien on the property recovered to secure the lesser of—
(A) the cost, to such transferee, of any improvement made after the transfer, less the amount of any profit realized by or accruing to such transferee from such property; and
(B) any increase in the valu
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Stable record: federal_law:legal_authorities:record_usc_43664ed4516fd059543f7db7
Source file: Laws/federal/codes/united-states-code/title-11/section-550-liability-of-transferee-of-avoided-transfer--5252fd836c.md
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Source location: Title 11, Chapter 5, § 550; chapter-005-creditors-the-debtor-and-the-estate.md
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**(a)** Except as otherwise provided in this section, to the extent that a transfer is avoided under section 544, 545, 547, 548, 549, 553(b), or 724(a) of this title, the trustee may recover, for the benefit of the estate, the property transferred, or, if the court so orders, the value of such property, from—
(1) the initial transferee of such transfer or the entity for whose benefit such transfer was made; or
(2) any immediate or mediate transferee of such initial transferee.
**(b)** The trustee may not recover under section 11 So in original. Probably should be “subsection”. (a)(2) of this section from—
(1) a transferee that takes for value, including satisfaction or securing of a present or antecedent debt, in good faith, and without knowledge of the voidability of the transfer avoided; or
(2) any immediate or mediate good faith transferee of such transferee.
**(c)** If a transfer made between 90 days and one year before the filing of the petition—
(1) is avoided under [section 547(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section547/b&num=0&edition=prelim); and
(2) was made for the benefit of a creditor that at the time of such transfer was an insider;
the trustee may not recover under subsection (a) from a transferee that is not an insider.
**(d)** The trustee is entitled to only a single satisfaction under subsection (a) of this section.
**(e)**
(1) A good faith transferee from whom the trustee may recover under subsection (a) of this section has a lien on the property recovered to secure the lesser of—
(A) the cost, to such transferee, of any improvement made after the transfer, less the amount of any profit realized by or accruing to such transferee from such property; and
(B) any increase in the value of such property as a result of such improvement, of the property transferred.
(2) In this subsection, “improvement” includes—
(A) physical additions or changes to the property transferred;
(B) repairs to such property;
(C) payment of any tax on such property;
(D) payment of any debt secured by a lien on such property that is superior or equal to the rights of the trustee; and
(E) preservation of such property.
**(f)** An action or proceeding under this section may not be commenced after the earlier of—
(1) one year after the avoidance of the transfer on account of which recovery under this section is sought; or
(2) the time the case is closed or dismissed.
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Federal law — U.S. Code and appendices · legal_authorities
In this title the following definitions shall apply:
(1) The term “accountant” means accountant authorized under applicable law to practice public accounting, and includes professional accounting association, corporation, or partnership, if so authorized.
(2) The term “affiliate” means—
(A) entity that directly or indirectly owns, controls, or holds with power to vote, 20 percent or more of the outstanding voting securities of the debtor, other than an entity that holds such securities—
(i) in a fiduciary or agency capacity without sole discretionary power to vote such securities; or
(ii) solely to secure a debt, if such entity has not in fact exercised such power to vote;
(B) corporation 20 percent or more of whose outstanding voting securities are directly or indirectly owned, controlled, or held with power to vote, by the debtor, or by an entity that directly or indirectly owns, controls, or holds with power to vote, 20 percent or more of the outstanding voting securities of the debtor, other than an entity that holds such securities—
(i) in a fiduciary or agency capacity without sole discretionary power to vote such securities; or
(ii) solely to secure a debt, if such entity has not in fact exercised such power to vote;
(C) person whose business is operated under a lease or operating agreement by a debtor, or person substantially all of whose property is operated under an operating agreement with the debtor; or
(D) entity that operates the business or substantially all of the property of the debtor under a lease or operating agreement.
(3) The term “assisted person” means any person whose debts consist primarily of consumer debts and the value of whose nonexempt property is less than $150,000.11 See Adjustment of Dollar Amounts not
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** In this section—
(1) “dependent” includes spouse, whether or not actually dependent; and
(2) “value” means fair market value as of the date of the filing of the petition or, with respect to property that becomes property of the estate after such date, as of the date such property becomes property of the estate.
**(b)**
(1) Notwithstanding [section 541 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section541&num=0&edition=prelim), an individual debtor may exempt from property of the estate the property listed in either paragraph (2) or, in the alternative, paragraph (3) of this subsection. In joint cases filed under [section 302 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section302&num=0&edition=prelim) and individual cases filed under section 301 or 303 of this title by or against debtors who are husband and wife, and whose estates are ordered to be jointly administered under Rule 1015(b) of the Federal Rules of Bankruptcy Procedure, one debtor may not elect to exempt property listed in paragraph (2) and the other debtor elect to exempt property listed in paragraph (3) of this subsection. If the parties cannot agree on the alternative to be elected, they shall be deemed to elect paragraph (2), where such election is permitted under the law of the jurisdiction where the case is filed.
(2) Property listed in this paragraph is property that is specified under subsection (d), unless the State law that is applicable to the debtor under paragraph (3)(A) specifically does not so authorize.
(3) Property listed in this paragraph is—
(A) subject to subsections (o) and (p), any property that is exempt under Federal law, other than subsection (d) of this section, or State or local law th
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** Except as provided in subsection (c) or (d) of this section, an entity, other than a custodian, in possession, custody, or control, during the case, of property that the trustee may use, sell, or lease under [section 363 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section363&num=0&edition=prelim), or that the debtor may exempt under [section 522 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section522&num=0&edition=prelim), shall deliver to the trustee, and account for, such property or the value of such property, unless such property is of inconsequential value or benefit to the estate.
**(b)** Except as provided in subsection (c) or (d) of this section, an entity that owes a debt that is property of the estate and that is matured, payable on demand, or payable on order, shall pay such debt to, or on the order of, the trustee, except to the extent that such debt may be offset under [section 553 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section553&num=0&edition=prelim) against a claim against the debtor.
**(c)** Except as provided in [section 362(a)(7) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section362/a/7&num=0&edition=prelim), an entity that has neither actual notice nor actual knowledge of the commencement of the case concerning the debtor may transfer property of the estate, or pay a debt owing to the debtor, in good faith and other than in the manner specified in subsection (d) of this section, to an entity other than the trustee, with the same effect as to the entity making such transfer or payment as if the case under this title concerning the debtor had not been commenced.
**(d)** A life in
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Federal law — U.S. Code and appendices · legal_authorities
Page 179
TITLE 11—BANKRUPTCY
§ 550
(B) that is not authorized under this title or
by the court.
(b) In an involuntary case, the trustee may
not avoid under subsection (a) of this section a
transfer made after the commencement of such
case but before the order for relief to the extent
any value, including services, but not including
satisfaction or securing of a debt that arose be-
fore the commencement of the case, is given
after the commencement of the case in exchange
for such transfer, notwithstanding any notice or
knowledge of the case that the transferee has.
(c) The trustee may not avoid under sub-
section (a) of this section a transfer of an inter-
est in real property to a good faith purchaser
without knowledge of the commencement of the
case and for present fair equivalent value unless
a copy or notice of the petition was filed, where
a transfer of an interest in such real property
may be recorded to perfect such transfer, before
such transfer is so perfected that a bona fide
purchaser of such real property, against whom
applicable law permits such transfer to be per-
fected, could not acquire an interest that is su-
perior to such interest of such good faith pur-
chaser. A good faith purchaser without knowl-
edge of the commencement of the case and for
less than present fair equivalent value has a lien
on the property transferred to the extent of any
present value given, unless a copy or notice of
the petition was so filed before such transfer
was so perfected.
(d) An action or proceeding under this section
may not be commenced after the earlier of—
(1) two years after the date of the transfer
sought to be avoided; or
(2) the time the case is closed or dismissed.
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2601; Pub. L.
98–353, title I
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