Bankruptcy Preference Creditor's Digest
Attorneys Defending Bankruptcy Bankruptcy Preference Claims Nationwide: 888.547.5170
Frequently Asked Questions
What are the initial steps in deciding if I want to engage you?
The first step is a phone call (888.547.5170). We do not charge for the time we spend in providing you our initial assessment.
For this initial conversation you will need the name of the debtor and the district in which the bankruptcy case was filed (e.g. Central District of California, District of Delaware, Southern District of New York). We also will ask you some basic questions. You will probably know the answers or the information will be readily available in your records. For example, we will ask about the goods or services you provided to the debtor and the length of time you have been dealing will the debtor.
Just by knowing this basic information we can tell a lot about the potential defenses to a preference claim. We will tell you our initial impressions about the defenses that may be available. We will also tell you whether we think that our defense philosophy is a good fit with your case.
If you would like to go forward with us, we will send you our engagement letter for your review. You do not engage us and do not owe us anything for work until we have an engagement letter in place.
Where do you get most of your preference defense clients?
Although we put a lot of effort in to our web site, we get most of our preference defense clients by referral from general practice law firms. Of course, we also are engaged by people who see our web site, give us a call to discuss the basics of their situation and decide to engage us after speaking to us.
How do you handle cases where local counsel is needed where the case is filed?
Local counsel normally is not required unless an answer must be filed. Our objective is to resolve claims before an answer needs to be filed. We take a very aggressive approach to preference claim resolution through presentation of defenses in a comprehensive and persuasive manner. Although we resolve the vast majority of our client’s cases through this process, there are instances where local counsel is required.
We have previously worked with lawyers in most of the larger districts. If we do not have a pre-existing working relationship with local counsel in a jurisdiction, we use our extensive database of preference cases to identify small firms that have the necessary preference claim litigation experience.
We share our work product with local counsel in order to eliminate the need for local counsel to redo any of the work we have already done. On an ongoing basis, we work with local counsel with a clear separation of responsibilities to avoid duplication of effort.
What are your fees for bankruptcy preference claims resolution?
We are confident in our abilities to assess and resolve bankruptcy preference cases. We maintain a flexible fee structure that reflects that confidence. Following our initial consultation, we usually will have enough information to estimate the legal fees to try and resolve the case prior to the need to file an answer.
We usually will ask for a relatively small retainer to be paid at the time of engaging us. We will discuss the need for and amount of any retainer following our initial consultation.
Our engagement letter will describe in more detail the fee structure that applies to your case, any retainer and its application.
Why don’t you provide sample answers and sample responses to demand letters?
If you were going into surgery, your doctor would tell you about what you might expect, the likely outcome and the risks of the surgery. However, your doctor would never hand you the scalpel and say “have at it”. We believe that providing sample answers to complaints and sample responses to demand letters would be the equivalent.
It is easy to underestimate the complexity of preference claim defense. While there are 3 commonly known defenses, we have identified 32 possible “defenses” to preference claims. Where there have been multiple transfers in the preference period, seldom will one defense do away with a claim in its entirety so a “mixing and matching” of defenses is required to provide the best result. Even the 3 most common defenses can be very complex to apply. For example, when mixing and matching subsequent new value and ordinary course of business, it may make a big difference which of these defenses is applied first.