Legal Question in Bankruptcy in Virginia

Why a company pd by another filing bankruptcy is required to return payment

We are a trucking company and provided services to a company that has now filed bankruptcy. Now, they are requiring us to return their payment. Our lease operator was pd 70% of that amount. Why are we liable for returning teh full amount to them? How do we find out how much, if any, we will get back? How is this fair? What if we don't have the money to sent back? Can we file bankruptcy, pay them, and demand it back?


Asked on 2/20/03, 12:35 pm

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: Why a company pd by another filing bankruptcy is required to return payment

They are probably claiming it as a preference. It may or may not be - you should definitely have an experienced bankruptcy lawyer look at this and advise. You may also have a claim to recover the portion paid to the lease operator, depending on the terms and nature of your agreement with them. If they have served you with court papers (which can be by regular mail), your time to respond is very limited, so speak with a lawyer immediately. We handle this type of case, so feel free to contact me.

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Answered on 2/23/03, 8:09 pm


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