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Section 544(b) of the Bankruptcy Code enables a bankruptcy trustee (or Debtor in Possession) to avoid any transfer of an interest of the debtor in property that is voidable under “applicable law” by a “qualified creditor”. This kind of action by a trustee is often referred to as an “avoidance action”. Before a trustee can maintain an avoidance action, the trustee must demonstrate the existence of a qualified creditor – meaning a creditor that: (a) has a right to avoid the transfers; and...

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