Legal Question in Bankruptcy in California

Help me understand Bankruptch Law

I don't quite understand bankruptcy law.

I own a small company. My company did a significant amount of work for a ''big'' organization. The ''big'' organization was delinquent for about $80,000. They agreed to pay us $70,000. They paid in three installments. Two of the installments were made within 90 days of the ''big'' organization filing Chapter 11. Now, they want more 2/3 of ''my'' money back...which they agreed they owed me.

I just don't get it. I really have to send back the money.

Thanks.


Asked on 3/07/01, 2:21 pm

1 Answer from Attorneys
Shai Oved The Law Offices of Shai Oved

Re: Help me understand Bankruptch Law

I know it may sound crazy but a Debtor may recover "preferential" payments made within the 90 days before the bankruptcy petition was filed. It is the Plaintiff's obligation to prove the elements of the preference action. You are entitled to various defenses. I would be happy to set up a free consultation to personally discuss this matter with you. You can email me your response or call my office at (818) 992-6588.

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Answered on 5/17/01, 2:11 am


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