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Old 01-12-2007, 06:10 AM
Ian Ian is offline
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Join Date: Apr 2006
Posts: 192
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Ofcourse, they can. It's called a "preference recovery action." It seems as if your customer filed a Chapter 11, and they have either confirmed a plan of reorganization, or recently converted to a Chapter 7. Sometimes it happens when the debtor filed a Chapter 7 originally, but trustees usually move faster in a new 7. There are several defenses to preference recovery actions, and
trustees/debtors in possession like to settle the cases. You need a lawyer immediately.
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