Preference Action Defense Attorney in Media Defends Tactics to Reclaim Money

Offering a strong defense against unwarranted collection tactics

The preference action defense attorneys of David R. Black’s Bankruptcy Legal Group, a division of Black, Stranick & Cella, P.C. in Media, have significant experience in preference actions. This unique knowledge gives our firm the capability to defend against tactics to reclaim money that was rightfully earned by our clients throughout Delaware and Chester counties.

What are preference actions?

Bankruptcy is a remedy reserved for the honest, but unfortunate debtor. A person (or business) cannot acquire debt under false pretenses and then use bankruptcy to discharge that debt, because that would violate all principles of fairness. Likewise, a debtor anticipating bankruptcy cannot selectively repay certain creditors to preserve personal or business relationships, and then head into bankruptcy court and force his remaining creditors to bear the full burden of his insolvency.

When one or more creditors feel that the bankruptcy petitioner has made excessive repayments to a preferred creditor 90 days prior to filing bankruptcy (the so-called preference period), those aggrieved creditors may file a preference action objecting to the special treatment and requesting that the recipient creditor return those payments to the debtor for inclusion in the bankruptcy estate.

If you are a creditor and you’ve been named in a preference action, David R. Black’s Bankruptcy Legal Group can help.

Defending against preference actions in Pennsylvania

Fortunately, Congress has provided creditors a number of defenses to preference actions under the Bankruptcy Code. The four most commonly used defenses are:

  • The ordinary course of business defense: This defense holds that payment for a debt was customary between the two parties, and considered “normal” for a particular creditor and debtor.
  • The ordinary business terms defense: Similar to the ordinary course of business defense, this defense attempts to prove the parties acted according to standard practices within their industry. Before 2005, this defense did not exist.
  • The contemporaneous exchange for new goods or services defense: The transfer was intended to be, and was in fact, a contemporaneous exchange for new value given to the debtor.
  • The new value defense: The transferee provided debtor with “new value,” usually in the form of goods or services after the “claimed preference” transfer was made.

Our firm has more than 30 years of experience representing creditors facing preference actions. Please contact a professional to discuss your options and potential defenses as soon as possible, as you only have a limited time period to respond.

We help you collect your business debt

When it comes to advocating for you to be paid for services provided, the attorneys of the Media-based David R. Black’s Bankruptcy Legal Group:

  • More than 30 years of experience and skills to minimize your liability
  • Prepare an aggressive defense to protect your financial interests
  • Meticulously evaluate the payment history within the 90 days before the bankruptcy was filed
  • Successful in ┬ánegotiating with bankruptcy trustees to retain money that is technically yours

We protect your hard-earned money

Have you been named as a defendant in a preference action? Call David R. Black’s Bankruptcy Legal Group, a division of Black, Stranick & Cella, P.C., to learn about your rights and defense possibilities at 610-365-1052 for a free consultation, or contact us via our online form. Our office is conveniently located half a block from the Delaware County Courthouse, and is accessible by SEPTA, Regional Rail and the trolley. Office hours are Monday through Friday, 8:30 a.m. to 5:00 p.m. We serve clients in Media and throughout Chester and Delaware Counties.