BeavEx Holding Corporation - Preference Defense Lawyer
Pursuant to 11 U.S.C. §§ 547 and 550, the Trustee seeks to avoid and recover from the individual defendants, or from any other person or entity for whose benefit the transfers were made, all preferential transfers of property made for or on account of an antecedent debt made to or for the benefit of the Defendant by the Debtor during the ninety-day period prior to the filing of the Debtor’s bankruptcy petitions.
On or about February 18, 2019, the Debtors filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code. On July 23, 2019 these cases were converted to Chapter 7 of the Bankruptcy Code.
The bankruptcy case and these adversary actions are before the Honorable Laurie S. Silverstein.
Prior to filing for bankruptcy, the Debtors were a logistic courier. The Debtors regularly purchased goods and services from numerous entities, and regularly paid for such goods and services.
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).
For more information, see our pages on Preference Defense Litigation: http://www.tobialaw.com/delaware-preference-defense-lawyer.html and Fraudulent Transfer Defense Litigation: https://www.tobialaw.com/defense-of-fraudulent-transfer-actions.html