It could be called a nightmare scenario within a nightmare scenario. A client or customer of your company has filed for bankruptcy protection. That’s bad enough: a major source of future revenue may have just gone up in smoke. You also have to calculate what’s owed to you, and worry that you’ll get any of it back. However, looking at the report from accounts receivable, the customer settled its debts with you 30 days ago. They’re paid up. You relax, thinking you’ve dodged a bullet. Until you receive notice of a preference action from the company’s bankruptcy trustee, demanding that you give back the money you were paid. Now you need to know your legal options and how to respond, as the decisions you make in handling this could impact whether or not you can hang on to those funds.


This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]