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The Trustee in Bankruptcy May Claim 'Undervalued Transactions' to a Third

Question 22

Multiple Choice

The trustee in bankruptcy may claim 'undervalued transactions' to a third party within five years before commencement of bankruptcy.Which of the following exceptions allows the third party to retain the property?


A) the transaction took the form of a sale and the third party paid market value.
B) the third party acted in good faith and had no knowledge of the bankrupt's financial problems.
C) the transaction was made before,and in consideration of,marriage.
D) A and C above only.

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