In an article published in Pratt’s Journal of Bankruptcy Law’s February – March 2025 edition, Nashville partner Shane Ramsey discussed a case pending before the U.S. Supreme Court where the Court will decide whether a bankruptcy trustee may avoid a debtor’s tax payment to the United States under Section 544(b) of the Bankruptcy Code when no actual creditor could have obtained relief under the applicable state fraudulent transfer law outside of bankruptcy.

“While it is difficult to tell how the Court will ultimately rule, the questions posed show that the Court appeared to be equally divided,” Ramsey explained. “Indeed, other high court commentators seemed to agree, with one stating that the ‘justices seemed divided during oral arguments,’ and other observing that ‘[f ]or the most part, the justices seemed unsure about which way to turn. . . . This sounds to me like a case in which the justices had read the briefs but formed so few strongly held predispositions that they were pretty much completely undecided coming into the argument.’”

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