Learning how to defend a preferential transfer action is a particularly useful art for the credit professional. In Part One, we discussed the Bankruptcy Code's specific requirements that must be established by the debtor or trustee in order for a transfer […]
Like all other defenses, the defendant/transferee must provide evidence establishing the elements of the ordinary business terms defense. Much can be learned from the many seeming half-hearted attempts to prove an ordinary business terms defense. […]
Once a debtor or trustee establishes a transfer is a preferential transfer, the burden falls upon the creditor to establish one or more of the defenses to avoidance set forth in Bankruptcy Code section 547(c), such as the "ordinary business terms" defense […]
When a company files bankruptcy, trade creditors are frequently left in financially vulnerable positions. Trade creditors are generally unsecured, and frequently receive only pennies on the dollar from bankrupt debtors' estates. We are frequently […]
Creditors face any number of perils when an account debtor files for bankruptcy – loss of sales, likely risk of collection of amounts owed, legal fees and more. One more challenge a creditor might encounter is a possibility the now-bankrupt debtor […]