The service of an adversary proceeding complaint often may provide the first notice to a business that it has been identified as a recipient of bankruptcy preferences. Without the warning of a demand letter, the complaint may seem like a missive from hell – laced with demands to avoid and recover preferential transfers and statutory citations to Sections 547(b), 550 and 502(d), the words have as much meaning to the uninitiated as hieroglyphics.
Based upon our interactions with our clients, we realized that most recipients of bankruptcy preference complaints want to understand the complaint. After all, for defendant businesses, especially those in the mid market segment that we primarily serve, the complaint may represent a threat to health equivalent to going into the hospital for open heart surgery.
We have developed a 5 part video series with the uninspired, but accurate, title: “Video Review of the Elements of an Adversary Proceeding Complaint to Recover Bankruptcy Preferences.” In Part 1, which can be viewed by clicking the image to the right, we provide an introduction to adversary proceeding complaints, which discusses the unique nature of an adversary proceeding and provides an overview of the 5 elements of an adversary proceeding complaint.