hello there, my company filed Chapter 11, i.e. severance pay 90 day prior to the debtor filing for Bankruptcy. Now the Trustee is trying to recover the transfers made to me and claiming the amount paid is “Preferential Transfers” or “Fraudulent Transfers” according to in Section 547 / Section 548 of Bankruptcy Code. I was not aware that they were filing Bankruptcy. I signed the agreement; the company gave me the wages in exchange. Hope you can help with some of my question? like if the Agreement is between the Company and me, does the Trustee also have to abide by the term and condition of Severance Agreement and what defense is applicable for avoidance? my rights as creditor? also does Section 547 or Section 548 of Bankruptcy Codes applies to my case? plz help me!
Thank you for your time.

hi austine,
assume that the trustee is within his rights to seek repayment. Don't read too much into the phrase "fraudlent transfer". There are certainly defenses to an avoidance action by the trustee, but based on bankruptcy law are extremely technical and fact intensive, and difficult for a pro-se litigant to assert.
Hire your own attorney to oppose the debtor's avoidance action.

read section 507(a)(3)(A) at
http://www4.law.cornell.edu/uscode/11/507.html
which grants third priority for wages and salaries, including severance pay, and received within 90 days of the bankruptcy filing. One has to file a proof of claim, which costs nothing at all if you do it yourself. According to section 1129(a)(8)(B), the debtor's plan of reorganization must pay the entire amount of an allowed claim in this class.
best of luck!

thank you jennifer for your time and advice. appriciated!