Settlement Agreement for Avoidance Actions
(Bankruptcy Rule 9019)


This template settlement agreement is for use in a bankruptcy case to settle an avoidance action pursuant to Bankruptcy Rule 9019. This template includes practical guidance, drafting notes, alternate clauses, and optional clauses. This settlement agreement is between a Chapter 11 debtor and the recipient of avoidable transfers. Avoidance actions generally allow the estate to recover certain pre-petition transfers and obligations. These actions arise under Chapter 5 of the Bankruptcy Code and include, among others, preference actions under Section 547 and fraudulent conveyance actions under Sections 544 and 548. Section 550 authorizes the recovery of the avoided transfers or obligations. For information on avoidance actions, see Preferences, Fraudulent Transfers, and Fraudulent Conveyances versus Preference Actions. This template settlement agreement is subject to court approval under Bankruptcy Rule 9019. Bankruptcy Rule 9019 generally requires that all proposed settlements of claims ...