ACT NO. 133
Commerce and trade; fraudulent conveyances and false checks; defenses
This act was a legislative response to a bankruptcy court case challenging a conveyance of real estate after a subsequent bankruptcy. Vermont and Connecticut are the only states that allow strict foreclosure, a judicial procedure that avoids a public auction of the property. This act amends Vermont's strict foreclosure procedure so that, if the bankruptcy court agrees, there will be sufficient protections to ensure that equity in the property will be protected.
Effective Date: May 5, 2006
The Vermont General Assembly
115 State Street