A Tale Of 2 Statutes: Parsing Preference Litigation
February 22, 2012, 2:48 PM EST
Law360, New York (February 22, 2012, 2:48 PM EST) -- Many creditors have had the unfortunate experience of receiving a demand letter or adversary complaint alleging that they received avoidable transfers — commonly known as "preferential payments" or "preferences" — during the 90 days preceding a customer's federal bankruptcy filing. Such claims arise under section 547 of the Bankruptcy Code, and can result in a creditor having to return certain payments made during the 90-day preference period.
What some creditors of Wisconsin companies may not know, however, is that the Bankruptcy Code is not the sole...