Legal Question in Bankruptcy in Illinois

preferential

My company did repair work for a trucking company. They were always behind on payments but they did pay. They filed bankruptcy November of 2007. They owed me $52,000. Now the Receiver is requesting I pay back $14,000 due to preferential payment. I read that it is NOT preferential payment if creditor was paid during normal business. They paid me every 60 days til the recdeiver took over. Examples I viewed showed payment received over a year later. Do you think it is worth me contesting this aligation?? Thank you!


Asked on 11/03/08, 10:08 am

2 Answers from Attorneys
Lesley Hoenig Lesley A. Hoenig, Attorney at Law

Re: preferential

You probably want to consult an attorney that specializes in this type of issue to figure this out. I would think it would be worth fighting because I wouldn't think it would cost $14,000 to fight the allegation. However, proving it was in the ordinary course of business isn't necessarily that easy. Did you do repair work regularly for them?

Read more
Answered on 11/03/08, 11:48 am
David Grisamore Law Offices of David T Grisamore

Re: preferential

Yes. Absolutely you should contest this preference claims as there are many defenses. Chapter 7 Trustees often file claims like this that are not particularly strong in the hopes of settling for a fraction of the claim.

Read more
Answered on 11/03/08, 12:30 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in Illinois