The Impact of New Legislation on Small Business Bankruptcies and the Risk of Preference Liability: A New Balancing Act Post-Pandemic

Recent changes in the bankruptcy law, including the addition of Subchapter V to Chapter 11 of the Bankruptcy Code, have had a significant impact on creditors’ rights and exposures.

In addition to summarizing the latest developments in the Subchapter V arena and concurrent changes in preference law, presenters from Barnes & Thornburg’s Financial, Insolvency, and Restructuring group will discuss what to expect in a Subchapter V case and strategies that creditors can use to avoid and defend against preference challenges. The following are a few topics we plan to discuss:

• What can the Debtor do in a Subchapter V bankruptcy and how does it differ from traditional chapter 11 and chapter 7 cases;
• How to determine if a creditor has preference exposure;
• Common defenses against preference actions, including defenses based on the ordinary course of business, provision of subsequent new value, and contemporaneous exchange of new value;
• The latest developments in preference law.

1.0 hour CLE credit.

Questions? Email MJ Mokhtari or call 424-239-3756.

Presented by the Southern California Chapter of the ACC.