Legal Spotlight

Brian T Harvey explains the intricacies of the Bankruptcy Code and offers some strategies that could help creditors defend themselves against preference liability

Whether you are a party to litigation entering into a settlement agreement, a trade creditor contemplating a compromise of a delinquent account, a lender negotiating a workout, or simply conducting business as usual, all dealings with financially troubled parties should be approached with an eye on avoiding preference risk. Creditors who do business with entities they suspect are on the verge of seeking bankruptcy protection may be required to return the payments received from that entity within