Common Living, In – Preference and Fraudulent Transfer Defense Lawyer

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 also may be other defenses available to you by showing that the Transfer does not fit the statutory predicates.

The following Adversary Proceedings were filed in the bankruptcy of Common Living, In, Case No. 24-11130-LSS on May 29, 2026:

26-50369-LSS Miller v. Brex Inc.
26-50370-LSS Miller v. Conservice LLC
26-50371-LSS Miller v. Core Ops Cleaners, LLC
26-50372-LSS Miller v. Eagle Eye Networks, Inc.
26-50373-LSS Miller v. Ernst & Young LLP
26-50374-LSS Miller v. Fresh Prints LLC
26-50375-LSS Miller v. Symetri
26-50376-LSS Miller v. Verizon Communications Inc.