PlainBillCongress, translated.Legislation. Context. Public interest.Referred to the Subcommittee on Commercial and Administrative Law.
Congressional Research Service
Version 00 · Introduced in House · Nov 10, 2005
Innocent Supplier Fairness Act - Amends federal bankruptcy law to detail the elements of a special relationship that the trustee in bankruptcy must prove in order to rebut the presumption that the creditor or party in interest against whom recovery or avoidance is sought has carried the burden of proving the nonavoidability of a transfer.
Specifies such elements as: (1) the insider character of the creditor or the party in interest; (2) common ownership of the debtor and such creditor or such party; (3) common management of the debtor and creditor or party consisting of overlapping senior management or directors; (4) explicit notice from the debtor to such creditor or party that a petition filling is contemplated or imminent before the date of the transfer; or (5) the use by such creditor or party of judicial process, during the 90 days before the petition filing, against the debtor to collect a debt with respect to which a transfer may have been made.
Amends the federal judicial code to require the trustee in bankruptcy to commence a proceeding to avoid preferences only in the district court for the district in which the defendant resides.
People & committees
Rep. Sodrel, Michael E. [R-IN-9] · R–IN
Legislative record
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Referred to the Subcommittee on Commercial and Administrative Law.
Referred to the House Committee on the Judiciary.
Introduced in House
Introduced in House
Primary sources
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Source last updated: Aug 15, 2025. Consult Congress.gov for the current record.
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