Question:

    Ken,

Here is the latest of which I feel is somewhat dubious at best. We installed a system 01/03 and got paid 02/03. 60 Days later the account does a Chapter 11. We also did an add-on 03/03 that went unpaid. We wrote that off 05/03.

Here is the rub/scam! We get a letter(from a group calling themselves the Post Confirmation Trust) demanding "repayment of preferential transfers", that were made to us. If we send a check immediately they will settle for 90%. If not they will aggressively pursue the entire amount plus attorney's fees, costs and interest.

Scam or not?

Thanks,
Leigh J. Johnson
CEO
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Answer:

    You are being pursued for a "preferential transfer".  A preferential transfer is a transfer [payment] made by a debtor within 90 days of filing a bankruptcy petition which is on account of an antecedent debt.  If the payment is to an "insider or relative of the debtor then it's within one year].  The preferential transfer is recoverable by a bankruptcy trustee [in a chapter 7 case] and by the debtor in possession or operating trustee in a chapter 11 case.
    Not every payment made within the time period is recoverable as a preferential transfer.  If the creditor who was paid extended consideration, or if the debtor was not in fact insolvent at the time of
the transfer, or if the transfer will not result in the creditor receiving more than it would in a liquidation or plan distribution, then its not a preferential transfer.
    In your case you were paid for your installation.  You would defend yourself by claiming that you were in fact paid in the ordinary course of business, and not for an antecedent debt, and that you did additional work after that for which you were not paid.
    A major problem encountered when defending a preference claim is that those actions are brought in the bankruptcy court where the case is pending and that court has nationwide jurisdiction, so you may be forced to participate in a jurisdiction that is very inconvenient for you.
    Sounds like you should let them know the facts and that it is not a preference.  Maybe they will go away.