Delaware Bankruptcy Preference Defenses — Creditors' Rights Attorneys

Bankruptcy preference defenses are available to creditors facing preference avoidance or avoidance actions. The law firm of Casarino Christman Shalk Ransom & Doss, P.A., is dedicated to protecting creditors' rights by vigorously defending and asserting all available defenses.

To discuss preference defense or schedule a consultation, please contact Casarino Christman Shalk Ransom & Doss, P.A., at 302-594-4500 or after 5 p.m. prevailing Eastern Time at 302-547-5859.

Preference Defenses

When facing a demand for the return of funds paid by a debtor who later declares bankruptcy, it is important to know that there are several defenses available. While each case must be examined individually, common defenses include:

• That the exchange was made in the ordinary course of business
• That the payment was made according to ordinary business terms, the way similar businesses in the industry operate
• That goods were provided (new value advanced) after an alleged preferential payment
• That goods or services were delivered and money received at essentially the same time (contemporaneous exchange for new value defense)

Recent changes to the U.S. Bankruptcy Code pursuant to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 have created additional defenses as well, including a venue defense if the claim should not have been filed in Delaware.

Experienced Preference Defense Lawyers in Delaware

Using a payment history going back one to two years to demonstrate a course of dealing with the debtor, the trustee, and if necessary. Our bankruptcy lawyers evaluate the payment history and compare payments made within 90-day period just prior to the bankruptcy filing. Our goal is to demonstrate to the bankruptcy court, that the payments within the 90-day period were ordinary and usual business payments, instead of preferential or fraudulent payments.

The purpose of the research is to enable us to demonstrate to the court that the payments were in the ordinary course of business and that no wrongdoing occurred between the debtor and the creditor prior to the bankruptcy filing. Throughout all bankruptcy proceedings, we aggressively protect creditors' rights and move quickly to resolve the case in the best interests of the creditor.

Casarino, Christman, Shalk, Ransom & Doss has achieved an AV-rating from our peers in the Martindale-Hubbell Peer Review RatingTM process. CV, BV, and AV are registered certification marks of Reed Elsevier Properties Inc., used in accordance with the Martindale-Hubbell certification procedures, standards, and policies. Martindale-Hubbell is the facilitator of a peer review rating process. Ratings reflect the confidential opinions of members of the Bar and the judiciary. Martindale-Hubbell ratings fall into two categories: legal ability and general ethical standards.