Avoidance Actions

Avoidance actions refer to legal measures taken to reverse transactions or contracts that were improperly conducted, typically in the context of bankruptcy or insolvency. These actions aim to restore assets to a debtor's estate, allowing equitable distribution among creditors. If a debtor made a payment or transferred property shortly before declaring bankruptcy, an avoidance action can challenge that transaction, arguing it unfairly favored one creditor over others. Essentially, they help ensure fairness in paying off debts and recovering value for all creditors affected by the debtor's financial difficulties.