In re Tracht Gut, LLC (Tracht Gut, LLC v. Los Angeles County Treasurer)

A tax sale conducted in accordance with California law conclusively establishes that the price obtained at that sale was for reasonably equivalent value, so  the sale cannot be set aside as a fraudulent transfer in bankruptcy.  The rule of BFP v. Resolution Trust Corp. (1994) 114 S.Ct. 1757 applies to tax sales conducted under California law.  The price received at a properly conducted tax sale is “reasonably equivalent value” and thus the sale cannot be set aside as a fraudulent transfer in bankruptcy under 11 USC 548.

Ninth Circuit Court of Appeals (Clifton, J.); September 8, 2016; 2016 WL 4698300

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