Legal Question in Bankruptcy in Delaware

being sued by bankruptcy court

recieved prin/int from an investment. Co went into bankruptcy, claiming I was paid 90 days prior, therefore, I must remit my orginal invest + the interest

Asked on 3/14/07, 1:28 pm

2 Answers from Attorneys

Carl Starrett Law Offices of Carl H. Starrett II

Re: being sued by bankruptcy court

You are being sued to avoid a preferential transfer. A preferential transfer is a transfer made (1) to or for the benefit of a creditor; (2) during the preference period (90 days or, in the case of insiders, one year) preceding the filing of the petition; (3)on account of an antecedent debt; 4)at a time when the debtor was insolvent; and (5) that permits the creditor to receive more than the creditor would receive from a distribution made in a chapter 7 liquidation in the absence of such transfer [ 547(b)].

There are a number of defenses available to this type of lawsuit. However, you need to consult a local bankruptcy attorney for further information about whether or not you can be forced to return the money.

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Answered on 3/14/07, 1:34 pm
Bruce W. McCullough Bodell, Bove', Grace & Van Horn. P.C.

Re: being sued by bankruptcy court

Let me guess--American Business Financial Services. Two questions: how much did you get repaid and do you have the paperwork on the investment and repayment? Feel free to contact me to discuss.

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Answered on 3/14/07, 1:36 pm

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