Please don't start a new Q&A session in order to ask a follow-up question, because you will be charged for two questions, and I will get paid for neither. That said, you asked:
You didn't at all answer the question. I know they can sue me. The question is: Can the fact that the invoice was DUE 90 days before the reach back period grounds for defending this with an ordinary course of business defense? Is their precedent for such a defense? I think I need someone familiar with bankruptcy law to answer this question and provide require references to specific cases.
A: I'm actually quite familiar with bankruptcy law. My previous answer was intended to demonstrate that you don't really need a defense at this point, because there is a cost effective means of avoiding a litigated resolution.
That said, a preference transfer of the debtor's interest is defined by Bankr. Code 101(54). A valid lien, foreclosure or some other actual disposition of the debtor's property must occur to create a transfer. An invoice which becomes due and payable, does not transfer the debtor's interest, unless the creditor is already holding a security deposit against future charges. If that's your circumstances, then the due date of the invoice would be relevant. Otherwise, the date of transfer, is the date when payment actually occurs.
Whether a transfer has occurred is controlled by bankruptcy law. See In re Walker (9th Cir. 1996) 77 F.3d 322, 323. But when a transfer occurs is determined by state law. The applicable law may be either Colorado or Michigan. Researching this issue would require about 30 minutes, and I can only do this as part of a premium services offer, because I need to be compensated for my time. Regardless, based upon your description of the circumstances, I don't believe that the law of any U.S. jurisdiction would regard the due date of an invoice as the date when a transfer of the debtor's property occurred -- because, no lien is thereby created, and no actual transfer takes place at that time. So, a premium services offer will likely yield an unproductive result.
If you actually want the research done, please let me know and I'll send the offer.
If not, then I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer -- otherwise, the website retains your entire payment, and I receive nothing for my efforts in your behalf.
Thanks again for using Justanswer!