Postpetition Transfer [ Bankruptcy] Law and Legal Definition

Postpetition transfer as used in bankruptcy proceedings refer to a transfer that is made after the commencement of a case. Here a debtor transfers the property after a bankruptcy case has commenced. An unauthorized postpetition transfer will not discharge a debtor from his/her debts. Postpetition transfers must be made after gaining advice of a qualified attorney.

The value of postpetition transfers under 11 USCS § 549 should be measured at time they occur to encourage settlements and other transactions. This will help to reduce the risk with debtors that the court will strike them down when further information becomes available [In re Texas Research, Inc., 862 F.2d 1161, 1163 (5th Cir. Tex. 1989)].