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Hi and thank you for your question. In the future, you can request me to answer any further questions.
I am sorry to hear this, but unfortunately, yes, the trustee does have this power to go after preferential payments.
You are a creditor in the case. You will be allowed a proof of claim for the amounts owed, (be sure to file one).
You are allowed to share in any asset distribution to creditors for your unsecured claim.
So, you may get a portion of the money owed, depending on the total value of the assets liquidated.
But, unfortunately, the law is there to prevent the debtor from paying just one or two creditors back (preference) as opposed as to the fair share to each creditor based on their total claim.
You can fight it, though
Defenses to preference include the following:
Under 11 U.S.C. 547(c). They include:
You would need to raise these defenses in an answer to a preference complaint. The burden will be on you to prove that despite the preference, the payment is protected by one or more of these defenses.
do you have any questions?
MY attorney seems to not want to proceed with this case since I have not been able to get a reply back from him. The payments that I have recieved add up to 11,737 dollars which the attorney recieved 4,000 dollars of that sum. Am I liable for the full amount.
You are liable for the amounts paid to you. If the money was paid to your attorney, most likely that would have to be paid by you as well, since the attorney fees are contracted between you and your lawyer, not the payor.
hopefully your situation could be covered by an exception. Talk to your attorney about the matter to see if they can fight the preference request for you.
You have been very helpful and I will go ahead and pay for your service, Thank You.
Great. thanks for your questions, good luck to you. feel free to request me if you have any further questions.
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