Affirmative Insurance Holdings, Inc. - Preference Defense Lawyer
On October 14, 2015 (the "Petition Date"), each Debtor commenced a Bankruptcy case by filing a voluntary petition for relief under chapter 11 of the Bankruptcy Code.
On March 10, 2016, the Court entered an Order converting the Debtors’ Chapter 11 Cases to Cases Under Chapter 7 of the Bankruptcy Code. The Debtors’ chapter 7 cases are jointly administered under Case Case No. 15-12136 (CSS).
The Debtors in these Chapter 7 cases are: Affirmative Insurance Holdings, Inc.; Affirmative Management Services, Inc.; Affirmative Services, Inc.; Affirmative Underwriting Services, Inc.; Affirmative Insurance Services, Inc.; Affirmative General Agency, Inc.; Affirmative Insurance Group, Inc.; and Affirmative, L.L.C.
These adversary actions are before the Honorable Christopher S. Sontchi.
Background, as alleged by Plaintiff:
"Founded in June 1998, the Debtors provided non-standard personal automobile
insurance ("NSPAI") policies for individual consumers in targeted geographic markets who found it difficult to obtain insurance from standard automobile insurance companies due to their lack of prior insurance, age, driving record, limited financial resources, or other factors."
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 page on Preference Defense Litigation: http://www.tobialaw.com/delaware-preference-defense-lawyer.html
If you conducted business with Affirmative Insurance Holdings, Inc. or any of the Debtors and especially if you have received a demand letter or a complaint or if a complaint has been filed but not yet served against you or your business, contact us here, email us at firstname.lastname@example.org or call the firm’s Wilmington offices directly at (302) 655-5303 to schedule a free initial consultation. We can discuss the situation and share with you our initial observations at no charge.