circuits are split as to whether the "subsequent new value" defense
U.S.C. § 547(c)(4) may be invoked by a creditor only when new value was
unpaid at the end of the preference period, or only so long as the debtor does
not make an otherwise unavoidable transfer on account...
Pleading a claim to recover a preferential transfer is
one of the most basic bankruptcy causes of action. Merely by establishing the
date, amount and recipient of the transfer, the plaintiff can establish that a
transfer was made, within 90 days before bankruptcy while the debtor was
by Bill Gray
One of the most difficult conversations a bankruptcy
attorney can have with a client is to explain the concept of bankruptcy " preference claims". The conversation often
arises when a client suddenly receives a letter (or worse yet, a lawsuit) in
which someone is demanding...