Legal Question in Bankruptcy in New Jersey
Preferential payments
If I received a letter to pay back preferential payments can I avoid paying back the payments by sending proof that the customer never paid within invoice terms?
1 Answer from Attorneys
Re: Preferential payments
Consistent payment by a debtor outside of the invoice terms may establish an "ordinary course of business" defense.
Check out the Frequently Asked Questions (FAQs) on our website at www.starrandstarr.com/faqs.htm
for more info. regarding bankruptcy preference and avoidance actions.
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