Legal Consequences of Invalidating Transactions

The search for liquid assets and the satisfaction of property claims by competing creditors is a priority task in the bankruptcy procedure. The challenge of transactions is one of the most effective ways to replenish the bankruptcy estate. In order to achieve the most effective result of the challenge, various protection mechanisms can be used. This article describes two competing legal consequences that arise as a result of the invalidation of transactions. The author characterizes the legal consequences and identifies their advantages and disadvantages in the context of existing legal relations.