When the U.S. Supreme Court decided BFP v. Resolution Trust Corp., holding that a mortgage foreclosure sale regularly conducted pursuant to state law could not be avoided as a fraudulent transfer under 11 U.S.C. § 548, it expressly left open the question of whether a tax foreclosure by the holder of a tax lien certificate could be avoided as a fraudulent transfer under that same statute. The recent decision of the U.S. Bankruptcy Court for the District of New Jersey in In re GGI Properties LLC provides an answer in the affirmative. Partner Gary Eisenberg considers the implications of In re GGI in this article*.

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