Why is it important to fight a preference claim?
A trustee is usually assigned to handle the case when a company files for bankruptcy. There are many duties and tasks for which the trustee or committee is responsible, one of which is to determine who may or may not have received a preference payment within 90 days of the filing of the bankruptcy. The method in which this evaluation is done, in many cases, is suspect. There is supposed to be a true evaluation and research as to the payment ledger of the debtor for the period in question. However, nowadays, many trustees take a shotgun approach and send every creditor a preference demand letter. To further compound the problem for the creditor, trustees now take a shortcut and hire third-party preference collection agencies to send creditors preference demand letters—even if you have not received a preference payment. The collection tactics are often impersonal and ruthless. Many agencies will assert a legal default judgement against the creditor if they do not receive a response withi
