Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
The Chapter 11 debtor can avoid any payment to a creditor not made in the ordinary course of business within the 90 days prior to filing of the bankruptcy petition -- unless the payment is for less than $5,850.
Hope this helps.
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If your business extends credit to a debtor and that debtor files bankruptcy during the following 90 days, then the debtor can get its money back, unless the amount of the payment is less than $5,850, or the debt is paid in the "ordinary course of busiess according to ordinary business terms."
In other words, if this is a typical transaction between the debtor any you, that you and the debtor would ordinarily do -- and the terms of the transaction are typical -- then you can resist the transfer and keep the payment.
Otherwise, you can be forced to return the payment.