Preference recoveries brought under Section 547 of the Bankruptcy Code are one of the main litigation tools that bankruptcy trustees, debtors-in-possession and liquidating trustees can use to bring additional funds into a bankruptcy estate.
Three Things Trustees Should Know About Affirmative Defenses in Preference Litigation
Since 2019, courts have struggled with the interpretation of due diligence requirement to Section 547, specifically whether the due diligence requirement is an element of a preference claim that must be adequately pleaded in the plaintiff’s complaint. While the law is still developing, there are three important takeaways for trustees to consider.
By
Brad Jones
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