LexisNexis® Legal Newsroom
The Ability of Creditor to Offset Preferential Transfers By New Value

The circuits are split as to whether the "subsequent new value" defense in 11 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...

Stating a Cause of Action on an Avoidance Action After Iqbal

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 presumed to...

Bankruptcy Preference Claim Can Be an Unwelcome Surprise

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...