Preferential Payments & Preference Transfers Attorneys
Is a Bankruptcy Trustee seeking money from you or your company claiming you or your company received a “preference” payment?
If so, you may have various defenses that limit or preclude the Trustee or Receiver from recovering money.
When a company (debtor) files for Bankruptcy protection a Trustee is appointed to collect the company’s assets and pay back creditors. In performing this duty, the Trustee seeks to avoid transfers that were made within the ninety (90) days prior to the company filing Bankruptcy. The burden is placed on the individual or company that received money to prove that the transfer was no “preferential.”
What is a “preferential payment” or “preference transfer” and what are the defenses?
Bankruptcy Code § 547 defines a preference transfer as payment that is made by the debtor to another individual or company: (i) on or 90 days before the debtor filed for Bankruptcy protection; (ii) on account of an antecedent debt; and (iii) made while the debtor was insolvent. Therefore, if you or your company received payment from a debtor within 90 days before the debtor filed for bankruptcy protection the Trustee will seek to avoid the transfer and recover the money the debtor paid.
Once the Trustee proves that you received payment from the debtor, the burden turns to you to prove that the transfer was not “preferential”. There are certain defenses that you can raise, including that the payment was made in the ordinary course of business between you and the debtor, or that in exchange for the payment you gave the debtor new value (goods or services).
Who Is Frier & Levitt And What Can Frier & Levitt Do To Help Me?
Frier & Levitt, LLC is a law firm that successfully represents clients in lawsuits and arbitrations before the Superior Courts of New Jersey and New York, as well as the Appellate Divisions, Federal and Bankruptcy Courts.
At Frier & Levitt, LLC, it is our goal to provide you with superior legal representation and personal attention. Upon engaging us, we will immediately devise and begin to implement the most expeditious and cost-effective strategy to prevent, or limit, the Trustee from recovering payment. We will keep you informed every step of the way as we work together to achieve success.
Frier & Levitt, LLC welcomes the opportunity to be of service to you.
For more information about whether you have a defense to a “preference” claim, or to discuss how Frier & Levitt, LLC can assist you in obtaining legal relief, please feel free to call us at (973) 618-1660, or toll-free at (888) LEVITT1 (i.e., 888-538-4881).
Contact Us. We can help.