In my previous post on preference actions, I wrote about how I was able to help a previous client head off a preference action before it even began thanks to sound analysis of the situation, thorough preparation and effective presentation to opposing counsel.
That said, there are also situations where baring your teeth may not be any help at all.
Case in point: A short while ago, a client was very upset about a preference action and was ready to fight back. After reviewing his situation, it was clear to me that his case was not strong. He would not be helped by defenses such as the Ordinary Course of Business Defense, the Contemporaneous Exchange Defense or the New Value Defense.
To be frank, his situation fit the classic definition of a preference action.
Sure, I could advise my client to retain me as his attack dog in an effort to reduce the payment. But to do so would have required the client to expend more in legal fees than the claim was actually worth. Once we compared the cards we had in our hand to the cards the trustee had in his hand, it was clear that our best strategy was to negotiate for the best offer possible and take it.
Knowing how to navigate these situations isn’t something they teach in law school. It’s something you learn over many years of doing it yourself. You gotta know when to hold’em. Know when to fold’em. Know when to walk away. And know when to submit a detailed response.
As a New York bankruptcy lawyer who has extensive experience working on the defense side as well as the trustee side of New York preference actions, I understand the preference action landscape better than most, and I can answer your questions and help you figure out the best and most cost-effective strategy for defending yourself.
EMAIL Bruce Weiner
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