Legal Question in Bankruptcy in Delaware

re: Proof fo Claim. Chapter 11

A customer has paid debt and has zero balance. Filed chp 11 sixty days after paying debt to us. Is a proof of claim necessary to file?


Asked on 3/17/04, 11:35 am

1 Answer from Attorneys

Bruce W. McCullough Bodell, Bove', Grace & Van Horn. P.C.

Re: re: Proof fo Claim. Chapter 11

If you are not owed money as of the date of the bankruptcy filing, there no longer is a debt for which you would file a Proof of Claim. The debtor has two years from the date the bankruptcy petition was filed, however, to file an adversary complaint against you for return of a "preference payment" made in the last 90 days before the bankruptcy petition was filed.

Adversary complaints in Delaware bankruptcy cases typically are filed close to the two-year limit. You should consult an attorney about possible defenses if you get sued.

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Answered on 3/17/04, 1:45 pm


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