From time to time it has proved beneficial to revisit existing bankruptcy statutes, and update them where necessary. The American Bankruptcy Institute established the Commission to Study the Reform of Chapter 11 (the “Commission”) for this precise […]
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 […]
It's generally known that Bankruptcy Code section 547(b)(4)(A) provides that for non-insider creditors, a preferential transfer is one made "on or within 90 days before the date of the filing of the petition." The calculation of the 90-day "preference […]
Now that the ordinary business terms defense stands on its own as an independent defense, courts are compelled to focus specifically on whether the ordinary business terms test has been satisfied. As before, the burden is on the creditor to establish […]
Credit managers are generally familiar with the "ordinary course of business" and "new value" defenses, which receive the predominant amount of attention in print and case authority. However, the ordinary business terms defense can be just as effective […]