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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…

ABOUT OUR EXPERTISE

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…

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Dismissed For No Payment

June 23, 2018, Southern District of Texas – The Debtor, Brougher Inc, dba Forge USA, provided steel forging products and services online. The Defendant, our client, was engaged in the manufacturing of machinery and equipment for use in oil and gas fields. Our client had sold two ingots to the Debtor within the preferential period. The Plaintiff sought to recover preference transfers worth $ 70,500.00 from our client under Section 547 of the Bankruptcy Code

Upon analysis of documents and invoices, we established to the plaintiff that the alleged preference period payments were received before the shipment of the goods and thus, the alleged transfer was a pre-payment and cannot be avoided as a preference. As an alternative argument, we also established that our client had a strong 547 (c)(1) defense. The alleged transfer occurred a few days after the purchase order and a few days before the issuance of the invoices. Based on our research, we cited precedents and showed it to the plaintiff that a few days difference in days is acceptable for a 547 (c)(1) defense.

Based on our arguments and defenses, the plaintiff dismissed the case for no costs.