Vermont § 7068 - Claims of holders of void or voidable rights

§ 7068. Claims of holders of void or voidable rights

• (a) No claims of a creditor who has received or acquired a preference, lien, conveyance,
  transfer, assignment, or encumbrance voidable under this chapter shall be allowed
  unless he or she surrenders the preference, lien, conveyance, transfer, assignment,
  or encumbrance. If the avoidance is effected by a proceeding in which a final judgment
  has been entered, the claim shall not be allowed unless the money is paid or the property
  is delivered to the liquidator within 30 days from the date of the entering of the
  final judgment, except that the court having jurisdiction over the liquidation may
  allow further time if there is an appeal or other continuation of the proceeding. (b) A claim allowable under subsection (a) of this section by reason of the avoidance,
  whether voluntary or involuntary, of a preference, lien, conveyance, transfer, assignment,
  or encumbrance, may be filed as an excused late filing under section 7074 of this title if filed within 30 days from the date of the avoidance or within the further time
  allowed by the court under subsection (a) of this section. (Added 1991, No. 45, § 2, eff. May 29, 1991.)