A Chapter 7 trustee is suing me for the value of the inventory a company returned to my business to satisfy its unpaid open account a month before the company filed bankruptcy. What can I do?
As with late payments, federal law does allow a Chapter 11 debtor or a Chapter 7 trustee to sue in federal Bankruptcy Court to recover any inventory, equipment or other property the debtor gave back to a creditor outside the ordinary course of business. Again, there are time limits for how far back the transfers occurred and several defenses that may be available to you. It is important that you contact your attorney as soon as possible.
