Many elder law cases occur after a person loses their mental capacity as a result of old age. It’s not uncommon for businesses to persuade impaired elders to enter into unsavory contracts or a relative seeks to be appointed guardian for a person with dementia or diminishing health. The end result could be financial exploitation or a misappropriation of funds. In one example, (names and events have been changed to […]
Sometimes people can be legitimately sued without any wrongdoing: Defendants find preference actions to be particularly objectionable. In these actions, the defendant did nothing wrong and is only being sued for the return of payments because they were made by a debtor in bankruptcy within the 90 days (or 1 year for insiders) preceding the bankruptcy filing. Bankruptcy preference actions brought against businesses after a customer files for bankruptcy can […]
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Case study: Defenses in Bankruptcy Preference Actions
Outside of bankruptcy law, it is perfectly acceptable for a debtor to prefer one creditor over another. For example, in any given month a consumer holding two credit cards may very well choose to pay off one credit card in its entirety while making only the minimum payment on the other. Bankruptcy law, on the other hand, purports to promote fairness and equality amongst similarly situated creditors.