January 31, 2019
You are contacted by your client who has received a letter from a bankruptcy Trustee. The letter demands the return of payments received from the bankrupt party during a specified time period that likely occurred months, or years, previously. With small exception, your client is likely frustrated and will deem the Trustee’s demand as patently unfair. This is a common scene replayed countless times by clients involved with an alleged claim for preferential transfers under 11 USC § 547 of the Bankruptcy Code. Your client is now being pursued for a preference.