Following Smith v. Mixon, 788 F.2d 229, 232 (4th Cir. 1986),  the 4th Circuit ruled that knowledge,  for purposes of the good faith defense under  § 550(b)(1) to a fraudulent conveyance claim, "does not mean ‘constructive notice.’"   Nor,  however,  does this  actual notice standard, therefore, require actual knowledge of the transfer’s voidability.

Edward C. Boltz is a partner at the Law Offices of John T. Orcutt, P.C., where he has managed the firm’s office in Durham, North Carolina since 1998, representing clients in not only Chapter 13 and Chapter 7 bankruptcies, but also in related consumer rights litigation, including fighting abusive mortgage practices.Mr.