Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarification.
Have you received any notice from the Court?
A debtor cannot make a preferential payment to a credito. Preferences are payments made by the debtor to its creditors on the eve of bankruptcy that are subject to recovery during the bankruptcy case. Preferential payments are often made without any improper motive, but they nonetheless are recoverable because they favor one creditor over another.
You are not a creditor. but a service provider, and since you provided goods to the debtor, a good argument can be made that you were paid for services, and their was no preferential payment.
Anytime a debtor is in a chapter 11, their recent transactions will be examined and thier is a possibility that you may have to return some of the money, however you are allowed to challenge any claim they make, and you should
but if we do challenge them in regards to giving the money back, it is still up the Delaware court to rule if we have to give them back the money that was paid prior to the filing of chapter 11?
It would be up to the Bankruptcy Court to order you to return the money, you would have to be noticed and sued by the Creditors or Bankruptcy court.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).