What is a preferential transfer or preference?

Certain payments made by the debtor within 90 days (or 1 year, if the payment was made to an insider) prior to filing for bankruptcy, can be avoided by the bankruptcy trustee. The trustee can demand that you pay back certain payments you received within 90 days (or 1 year) prior to someone’s bankruptcy filing. You will then share proportionally any payments, if any, with other creditors. If you received a trustee’s demand letter, contact a competent bankruptcy lawyer because there might be defenses to the trustee’s preference action. If you need to talk with an experienced bankruptcy lawyer, contact the Juras Law Firm, PLC, in Phoenix, Arizona, at (480) 425-2009