§1523 Actions to Avoid Acts Detrimental to Creditors

Summary

When a foreign proceeding is recognized, the foreign representative can go into a U.S. bankruptcy case about the same debtor and start certain avoidance and recovery actions. Those actions let the representative try to undo improper transfers, recover property, or use powers listed in eight bankruptcy sections: 522, 544, 545, 547, 548, 550, 553, and 724(a). If the foreign proceeding is a foreign nonmain proceeding, the U.S. court must be convinced the action is about assets that U.S. law says should be handled in that foreign nonmain proceeding.