What you may not know is that the bankruptcy code provides a number of defenses to preference claims, and you should never simply hand.
The Preference Law and Defenses. In many bankruptcies, a debtor's most significant asset is its preference claims against its creditors. The bankruptcy defines a.
In a bankruptcy setting, a preference action is a type of lawsuit that is filed by a bankrupt entity against their creditor.
Preference bankruptcy defense - official site
While our attorneys welcome your comments and questions, keep in mind that any information you provide us, unless you are now a client, will not be confidential. Attempted payments tendered as COD are considered. Even if the application of the defenses is uncertain, asserting these defenses may allow you to settle the alleged preference for an amount you can justify. To strengthen the application of this defense, you should document your intention that the exchange sale of goods for example is intended to occur contemporaneously with payment. EMAIL US FOR A RESPONSE. Since no net depletion of assets occurs, other creditors are not harmed, and the transfers are not avoidable. Trump Picks Former US Attorney Acosta To Lead DOL.