U.S. Auto Sales, Inc. – Preference and Fraudulent Transfer Defense Lawyer

Beginning on August 13, 2025, Don A. Beskrone, Chapter 7 Trustee for Debtors U.S. Auto Sales, Inc. and related Debtors (see below) began filing complaints seeking to avoid and recover payments made during the 90 day period prior to the bankruptcy filing, as preferential under Section 547 and/or fraudulent under Section 548 of the Bankruptcy Code. Approximately 13 such complaints have been filed so far.

The bankruptcy cases and these adversary actions are before Judge Thomas M. Horan.

The Debtors are: U.S. Auto Sales, Inc., U.S. Auto Finance, Inc., U.S. Auto Receivables Financing, LLC, USASF, LLC, USASF National Corp. and USASF Servicing, LLC.

For more information as to defenses that may be available to these avoidance actions, please see our page on Preference Defense Litigation and please see our page on Defense of Fraudulent Transfer Actions.

Common Defenses in Preference Actions

The United States Bankruptcy Code provides many affirmative defenses to preference actions, contained within Section 547(c). For example, the most common defenses that may be available to a Defendant under Section 547(c) may include:

• the transfer was a contemporaneous exchange for new value given to the debtor (i.e., the debtor received something of value in exchange for the transfer); 11 U.S.C. §547(c)(1);
• after such transfer, Defendant gave new value to or for the benefit of the debtor (i.e., the Defendant extended additional credit to the Debtor after receiving the transfer) 11 U.S.C. §547(c)(4); or
• the transfer was in payment of a debt incurred by the debtor in the ordinary course of business or financial affairs of the debtor and the recipient (i.e., Defendant made the transfer under ordinary business terms). 11 U.S.C. §547(c)(2).

Common Defenses in Fraudulent Transfer Cases

Among the more common defenses that may be available are that you provided reasonably equivalent value for a transfer that is now alleged to be constructively fraudulent or in good faith provided value to the debtor in exchange for the transfer. There may be other defenses available to you by showing that the Transfer does not fit the statutory predicates. For example, solvency of the debtor or that the transfer was not actually an interest of the debtor in property.

The following Adversary Proceedings were filed in the bankruptcy of U.S. Auto Sales, Inc., Case No. 23-11251-TMH between August 21 and 22, 2025:

25-52069-TMH Beskrone v. 1Path Managed Services, LLC
25-52070-TMH Beskrone v. Alabama Department of Revenue
25-52071-TMH Beskrone v. Cigna Health & Life Insurance Co.
25-52072-TMH Beskrone v. Hyundai Capital America
25-52073-TMH Beskrone v. Life Insurance Company of North America
25-52074-TMH Beskrone v. OATA Processing LLC
25-52075-TMH Beskrone v. Peritus Portfolio Services II, LLC
25-52076-TMH Beskrone v. RSC Insurance Brokerage, Inc.
25-52077-TMH Beskrone v. World Omni Financial Corp.
25-52078-TMH Beskrone v. Tennessee Department of Revenue
25-52079-TMH Beskrone v. Tiger Analytics, LLC
25-52080-TMH Beskrone v. VisualVault LLC
25-52081-TMH Beskrone v. Computershare Inc. d/b/a Computershare Corporate T…