Zimmermann Law Preference Payment Actions

Preference Payment Actions Explained

This text needs to be replaced with original text. There is perhaps nothing more frustrating than when one of your customers files bankruptcy and avoids paying money that they owe your company. However, anyone that has dealt with a “preference action” knows that merely writing off a debt as uncollectible is not the worst thing that can happen when a customer enters bankruptcy. A preference action has the potential to be much worse, because it is a lawsuit by the debtor or the bankruptcy trustee against your company, seeking to recover payments that were made by the debtor to your company before the bankruptcy. Fortunately, the Bankruptcy Code provides creditors with certain defenses that can be used to defeat a preference action.

F&Q - Preference Payment Actions

Third Preference Payment Action questions in this location?

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Preference Payment Actions FaQ question 1 here?