LexisNexis® Legal Newsroom
Preference Claims Defense Number 1

by Bill Gray In our last post we outlined the legal defenses against a bankruptcy preference claim . Now let's look at the "ordinary course payment" defense in a bit more detail. An ordinary course payment is, essentially, when there was nothing at all unusual or out of the ordinary...

Preference Claims Defense Number 2

by Bill Gray In our last post we outlined the "ordinary course payment" legal defense against a bankruptcy preference claim. Now let's look at the " subsequent new value " defense in a bit more detail. Subsequent new value is in the nature of a set off, and is meant to...

Preference Claims Defense Number 3

by Bill Gray In our last post we outlined the second of three common defenses to preference claims, the "subsequent new value" defense. Now let's look at the third common defense, "contemporaneous exchange for new value", in a bit more detail. Contemporaneous exchange...

Must Read Opinion on Preference Issues in Bankruptcy

Judge Tony Davis has authored an opinion which should be recommended reading for anyone litigating preference issues. The opinion encompasses the court’s rulings on both summary judgment and trial on the merits and touches on both procedural and substantive issues. Ciesla v. Harney Management Partners...

Fourth Circuit Finds Good Faith in Ponzi Scheme Transaction

What “good faith” means when someone accepts payments from a Ponzi scheme perpetrator is not clearly defined anywhere. Good faith becomes relevant when a trustee or receiver sues an investor or other recipient of funds from the Ponzi schemer during the course of the scheme on a fraudulent...