Bankruptcy preferences are a major-league annoyance to most companies who get hit with them. Conversely, they provide a much-needed source of revenue to bankrupt estates. Under the current law, it is necessary to examine both industry numbers and previous experience when trying to determine if a preference exposure exits. The new bankruptcy law makes this process a whole lot easier and D&H Credit Services Inc. has made it even simpler.
Under the new law, to prove a preference does not exist, it is only necessary to prove it against industry experience or previous experience between the two parties. That’s how the new law made it simpler. D&H makes the process even simpler by providing the analysis for industry for $795. Within minutes of receiving the analysis, a decision can be made that either no preference exists or additional work needs to be done to make that final determination. Note: This analysis can be used under the current law also. It simply has to be combined with that grueling previous experience analysis.
“It’s really a no-brainer,” says Hal Schaeffer, a certified expert witness in bankruptcy preferences and president of D&H Credit Services Inc, the company that provides the reports. “For $795 you can determine very easily if industry experience is going to knock the preference claim out of the ballpark. If the payments fall within the industry numbers, it’s all over. And, if they don’t, then you can decide what to do next.”
Compiling industry statistics can be a grueling task for those who do not do it everyday. Not only that, but the expense involved in developing these numbers often outweighs their negotiating value in low-dollar cases. The analysis developed by D & H is so inexpensive it can be used in all cases, including those smaller dollar scenarios that were often settled because the expense involved in developing a case did not make financial sense.
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