Preference Litigation Prosecution and Defense
The Bankruptcy Code is designed to prevent a debtor from favoring certain creditors. It is also designed to prevent creditors from taking advantage of a debtor and getting more of the debtor's assets than is fair. Unfair distribution of a debtor's assets is referred to as a preference. Preferences are defined more specifically as any payment to a creditor within 90 days of a bankruptcy filing, or within one year of the bankruptcy filing if the creditor was an insider, as a result of which that creditor receives more than it would have been paid in a Chapter 7 bankruptcy. When preferential payments are made, the Bankruptcy Code provides for preference lawsuits to recover those payments.
At The Lobel Firm, L.L.P., we have more than 40 years of experience handling bankruptcy litigation of all types. Individuals and businesses turn to us to resolve preference litigation quickly and effectively so that the bankruptcy process can move forward unhindered.
Avoiding Preference Litigation
While winning a preference lawsuit is certainly positive for a creditor that has been sued, our attorneys believe that the ultimate goal is to avoid these types of lawsuits altogether. There are ways of conducting business that can be employed to avoid having to pay money back as a result of preference litigation. We know those business practices.
To discuss your case with one of our California bankruptcy preference litigation lawyers, call 949-791-9642 or contact us via e-mail.
