Follow Us

Law.com Subscribers SAVE 30%

Call 855-808-4530 or email GroupSales@alm.com to receive your discount on a new subscription.

Bankruptcy Litigation

Preference Attacks To Recover Prepetition Compensation Paid to Consultants of Troubled Companies

Employees of a troubled company who stay on as consultants to assist in liquidating its assets or preparing the company for a bankruptcy filing may later be disappointed to face claims to claw back their prepetition compensation.

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Employees of a troubled company who stay on as consultants to assist in liquidating its assets or preparing the company for a bankruptcy filing may later be disappointed to face claims to claw back their prepetition compensation.  Ironically, those who made it possible for the company to maximize the recovery on its assets or to file for bankruptcy, may be sued by a bankruptcy trustee for the return of monies received within 90 days of the bankruptcy filing as preferential payments.

Read These Next