Legal Question in Bankruptcy in Delaware

company in bankruptcy sueing for subcontractor payments

I worked as a subcontractor for a company which is incorporated in Delaware. They are now involved in a bankruptcy and want me to reimburse them for payments made for work done.

My question is, what is the law pertaining to this? Also, to me, this doesn't seem fair. I could understand a law to protect creditors from executives trying to siphon funds from a failing company - but I'm just a working person.

Thanks very much for any help you can provide.

--name removed--Jacobs


Asked on 1/10/02, 12:20 am

3 Answers from Attorneys
Anthony Comparetto Comparetto Law Firm

Re: company in bankruptcy sueing for subcontractor payments

Are they trying to recover the funds as a preferential transfer. What was the term they used. email direct at [email protected]

Read more
Answered on 1/10/02, 8:35 am
Bruce W. McCullough Bodell, Bove', Grace & Van Horn. P.C.

Re: company in bankruptcy sueing for subcontractor payments

It sounds like you may have been sued in a bankruptcy adversary action for so-called preferential payments. In general, the bankruptcy debtor can seek to recover payments made in the last 90 days before the date the bankruptcy was filed.

If the case was filed in Delaware, please feel free to contact me directly to discuss this matter further.

Read more
Answered on 1/10/02, 9:25 am
Alexander M. Rosenfeld Rosenfeld & Stein, P.A.

Re: company in bankruptcy sueing for subcontractor payments

The trustee is probably trying to recover a 'preferential payment'. That is a payment made by the debtor within 90 days of the filing of the petition. It is an allowed action by the trustee and does not reflect negatively upon you.

Read more
Answered on 1/10/02, 4:00 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in Delaware