NEW for 2008.

Just revised to reflect all current laws related to bankruptcy.

Occasionally, a creditor will receive a demand on behalf of a bankruptcy estate to refund payments the creditor received from its customer that is now in bankruptcy. A debtor has a right to pay whichever creditor it may choose at whatever time it chooses. However, one of the primary objectives of the Bankruptcy code is to ensure that all creditors of a class are treated alike. One of the ways that the Bankruptcy Code accomplishes this objective is to give the bankruptcy trustee the power to recover from the creditor those payments that meet the statutory definition of a preference. Reading and referencing this guide will provide you with the basics of understanding and working your way through the issues around Preference actions.