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Michigan bankruptcy court upholds rights of sellers of goods.(credit column)
A recent opinion in a Michigan bankruptcy court has upheld the rights of creditors delivering goods to a debtor during the 20-day period prior to a bankruptcy petition. The debtor objected to the allowance of the 20-Day Claims because the creditor "might" have liability for preferential transfers. The opinion, which was rendered on September 16, 2008, is an important decision for sellers of goods.
How did it come to be that the 20-Day Claims were questioned? A short history of the provision in the Bankruptcy Code may help put things in perspective.
20-Day Claims and BAPCPA
The Bankruptcy Abuse Prevention and Creditor Protection Act ("BAPCPA"), ...
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Source: HighBeam Research, Michigan bankruptcy court upholds rights of sellers of goods.(credit...