How Can You Protect and Defend Your Business From Preference Actions?
Creditor's Rights Toolkit
When a company declares bankruptcy, parties that did business with the troubled company often face unpaid debts and minimal prospects for payment. These creditors may also face what is typically considered a frustrating process – being sued in a preference action to recover pre-bankruptcy payments.
This article briefly explains what a preference action is and some common defenses your business may have if sued. To access this article and read other insights from our Creditor's Rights Toolkit, please click here.