As the Devil’s Dictionary of Bankruptcy Terms explains, “good faith” refers to the “honesty of intention, freedom from knowledge of circumstances that would put a reasonable person on inquiry, and an absence of design to gain an improper advantage. Referred to by courts as an ‘overriding principle of bankruptcy administration,’ the concept comes into play throughout a bankruptcy case—from the filing of the case, to the protection of certain persons doing business with the estate, to the potential applicability of certain defenses asserted by a transferee, to the filing of a plan.” Read the full Devil’s Dictionary definition from our friends at Polsinelli.
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