As it relates to preference actions and settlement strategies, creditors should first perform an ordinary course of business analysis. All transactions that creditors believe were paid within the ordinary business term should be removed.
Creditors then should subtract the total remaining potential preference claims after the ordinary course of business evaluation is made. Then subtract any new value (depending on the jurisdiction, a creditor may need to separate the paid for and unpaid for new value). In addition, the creditor should make certain that all the calculations made are consistent with the law in the circuit where the case has been filed.
Furnished by Stephen Bastien, Publisher -- Creditor's Edge, Daily and Weekly Summary of Bankrupt and Troubled U.S. Companies http://www.creditnews.com FREE SAMPLE -- 800-407-9044 -- steve@creditnews.com
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