Litigating Bankruptcy Preferences When Nothing Is “Ordinary”
Author: Deborah Kovsky-Apap.
Source: Volume 37, Number 12, December 2021 , pp.155-158(4)
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Abstract:
The ordinary-course of business defense is intended to encourage creditors to continue to do business with debtors by shielding ordinary-course payments from avoidance and recovery. In this article, the author discusses the limits of what is defined as “ordinary” in the cases, and the disconnect it creates between bankruptcy policy and practice. She concludes with a note on the Consolidated Appropriations Act of 2021, which she finds is a partial and temporary fix.Keywords: Section 547(b) Preferential Transfers; The Consolidated Appropriations Act of 2021
Affiliations:
1: Troutman Pepper Hamilton Sanders LLP.