It has been in the news recently that Alex Jones has resorted to the tried and true strategy of having someone else hold his assets while he goes bankrupt. The problem with this strategy is that lawmakers and courts are aware of it, and there is a process called "clawing back" that is used to reclaim such property.

I'm wondering: what happens if that other person also hands the assets to someone else? How many additional hurdles does each iteration present?

1 Answer 1


A bankruptcy trustee may invoke state fraudulent transfer statutes to achieve this result, which are a distinct and independent basis from the bankruptcy code provisions who only apply to direct transferees (but can impose liability upon a direct transferee even if the direct transferee is no longer in possession of the asset).


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