New Orleans Preferential Transfer Action Lawyers
As a business owner, you have the right to expect full and timely payment for the goods and services you provide. When you receive the money a client owes you, you typically consider your business transaction complete. However, if your client declares bankruptcy after making a payment, the legality of the payment may be called into dispute. You could receive notice of a preferential transfer action, which can threaten your assets and place your business in jeopardy if you are required to return your client’s money.
With a strong legal defense strategy, you may be able to protect the funds that are rightfully yours. At the Law Office of David D. Kervin, Jr., LLC, we fight to keep businesses strong in the face of legal adversity. To find out if our New Orleans preferential transfer action lawyers can put their knowledge and experience to work for you, contact us as soon as possible at 504-599-5906.
Understanding Preferential Transfer
A preferential transfer action can pose a serious and sudden threat to a business. A bankruptcy trustee may claim that a bankrupt client’s recent payment to you was a form of preferential transfer and was therefore invalid. They may demand the return of this money in whole or in part. In most cases, to declare preferential transfer your client must have:
- Made the payment no more than 90 days before filing for bankruptcy
- Filed for bankruptcy under Chapter 7
Even if these conditions are met, businesses that face preferential transfer actions have options. Bankruptcy law is rife with intricacies and exceptions that may invalidate your client’s claims against your business assets.
Contact Us
In the event of a preferential transfer action against your business, it is crucial to have dedicated legal representation on your side. To discuss your case with a New Orleans preferential transfer attorney, contact the Law Office of David D. Kervin, Jr., LLC, at 504-599-5906 without delay.