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Our bankruptcy practice is devoted primarily to representing defendants of preference and fraudulent conveyance actions under Sections 547 and 548 of the Bankruptcy Code. Read More…

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We have deep knowledge of preference and fraudulent conveyance defense litigation. This means reviewing and analyzing hundreds of preference and fraudulent conveyance judicial opinions issued each and every year. Read more…

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We limit our practice to defending preference and fraudulent conveyance claims. Our dedication works and we can prove it. We represented a nationally known brand, a sportswear manufacturer ... Read More…

Home / * Firm News / Dismissed For No Payment

Dismissed For No Payment

April 5, 2018, Delaware – Our client, the Defendant is a small local milk processing and distribution company in Las Vegas, Nevada. It supplied dairy products to the debtor’s stores operating as a grocery business. The Defendant delivered various kinds of dairy products which the debtor sold in its chain of grocery stores in the Las Vegas, Nevada area. The plaintiff sought to recover the alleged transfers totaling $188,759.57 as avoidable preference transfers under 547 of the bankruptcy code.

In our position statement, we successfully established that the first-time transactions between the parties can come within the ordinary course of business exception and hence the alleged preference payments are exempt from avoidance under Sec. 547 (C)(2)(A) of the Bankruptcy Code. We also successfully established that the transfers may not be avoided because the defendant supplied unpaid subsequent new value in exchange for the alleged transfers.

The trustee dismissed the case for no payment.