skip to main content

Insights

The Power of a Trust Fund Claim: Paying Milk Producers First

The Texas Agricultural Code requires milk processors to hold funds in trust for the benefit of milk producers, including dairies and cooperatives.  A trust fund is a powerful tool that will allow a milk producer to be paid ahead of other creditors […]

The Art of Defending Preferential Transfers – Part Two: The Defenses

Learning how to defend a preferential transfer action is a particularly useful art for the credit professional.  In Part One, we discussed the Bankruptcy Code's specific requirements that must be established by the debtor or trustee in order for a transfer […]

It Matters Whether an Agreement is "Executory"

A recent decision by the full contingent of judges from the Eighth Circuit Court of Appeals (covering seven Midwest states) demonstrates that a common bankruptcy term should be added to your vocabulary.  That term is "executory."  […]

When the 90-day Preference Period is not 90 Days

It's generally known that Bankruptcy Code section 547(b)(4)(A) provides that for non-insider creditors, a preferential transfer is one made "on or within 90 days before the date of the filing of the petition."  The calculation of the 90-day "preference […]

Tenants Beware: Your Landlord's Bankruptcy Could Result in a Lost Lease

It is unfortunate, but true: a commercial tenant may someday be required to deal with a bankrupt landlord.  Any bankruptcy filing can be complicated and chaotic.  But, a tenant faced with a landlord's is more than just a creditor who is […]

Fully Secured Creditor May Still Face Preference Exposure

A recent, troubling decision by the United States Bankruptcy Court for the Southern District of California in Gladstone v. Bank of America (In re Vassau) concluded that alleged preferential payments made to a fully secured creditor might be recovered […]