Bankruptcy as an Occasion for Restitutionary Claims

Whether we are concerned with claims against the estate or with voidable transfers, it is essential to note that the Bankruptcy Act makes the filing of a bankruptcy petition a decisive event: a transaction occurring after the filing is likely to have consequences far different from what would have ensued if it had occurred before. The date of filing is, indeed, one of the very meanings of the word "bankruptcy" as it appears in the act. This point of distinction must be observed in each part of the discussion that follows. In the main, Part II concerns restitutionary principles in relation to claims against the estate; and Part III concerns certain of the trustee's powers to avoid transfers by the debtor, as affected by concepts of restitution.

It is undesirable to be rigorous in this division of the subject, however.