Why is the bankruptcy trustee suing my company for a preference claim?

  • If someone receives money from a company within 90 days of the date that company filed for bankruptcy, it is considered a preference and a trustee can sue to get that money back even from a company that is owed a great deal more money.
  • In the course of litigation, it is possible to defend against a trustee’s preference claim.
Cohn, Lifland, Pearlman, Herrmann and Knopf LLP