Federal Reserve Chairman Ben S. Bernanke is testifying today to a joint hearing of the House Oversight and Government Reform Committee, and House Domestic Policy Subcommittee. The purpose of the joint hearing is to examine events surrounding Bank of America’s $50 million acquisition troubled investment house Merrill Lynch in September 2009 and its receipt of [...]

We previously dissussed what preferences are and some common defenses.  Many small businesses may be wondering if there is any way to get your money, but avoid claims of preferential payment.   Unfortunately, there is no absolute, “slam dunk” way to avoid a bankruptcy preference claim risk.Â

Yesterday we discussed preferential payments – payments made to an insolvent company within 90 days of the bankruptcy filing.  To more equitable or fairly divide the limited assets among the creditors, these payments must be returned to the debtor.  Your first question upon receiving a preference demand letter is likely to be:  Do I have to [...]

Word on the street is that Tarheel Dominion Company, a pretty large customer of yours, is in a cash crunch.  You are, however, relieved when you receive timely payment of $100,000 for services you rendered to Tarheel Dominion, and the check clears.
Two months later, you hear that Tarheel Dominion has filed for Chapter 11 bankruptcy protection.  [...]

On April 30, Chrysler, LLC and numerous of its related subsidiary companies filed for Chapter 11 bankruptcy protection in the Southern District of New York Bankruptcy Court. Chrysler will continue to operate as a going concern, while it attempts to quickly confirm a Chapter 11 Plan, of Reorganization.  An Obama administration official predicted the reorganization would [...]