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Avoiding Preference Risk in Collection Matters

Debt, BankruptcyBy Michael SiddonsOctober 28, 2013

Here’s the scenario-you have been chasing after a delinquent account and finally get the debtor to pay up. A few months later, you get sued by the debtor’s Bankruptcy Trustee for the money that the debtor just paid you! Sounds crazy, right? It’s called an “Avoidable Preference.” If you do business with individuals, or businesses,…

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