Law360, New York (June 27, 2016, 1:18 PM EDT) -- The Seventh Circuit recently expanded the "ordinary course" defense of creditors who have been sued for the avoidance of preferential payments under Section 547 of the Bankruptcy Code. In re Creditors Committee of Sparrer Sausage Co. Inc. v. Jason's Foods Inc.[1] The court provided a road map for preference defendants and expanded the range of "ordinary course" historical payment experience that provides the benchmark for insulating alleged preferential transfers made during the 90 days preceding bankruptcy. After applying the broader standard as well as the "subsequent new value" defense, the creditor's liability dropped from $306,310 to zero. The court offered some other interesting tactical advice to preference defendants seeking protection from a preference lawsuit....