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Ellen
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What payments by a Corp , doing a Chap 11 are considered NON

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What payments by a Corp , doing a Chap 11 are considered NON preference payments during the 90 days prior to filing the Chap 11.
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Thank you for your question. I will strive to provide you with legal information to assist you.

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What payments by a Corp , doing a Chap 11 are considered NON preference payments during the 90 days prior to filing the Chap 11.


Bankruptcy Code §547 provides that the following transfers within 90 days are not avoidable preferences:
1. payments that do not aggregate more than $5,000;
2. the payment was not for an antecedent debt but was for new value-- it was a contemporaneous exchange;
3. the debtor was not insolvent at the time of the transfer;
4. The payment was in the ordinary course of business

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