Credit Research Foundation HOMEROOM

Course 135: Defending Preferences in Bankruptcy

Developed and Delivered by:

Hal Schaeffer, President, D&H Services

Hal Schaeffer has been active in the credit industry for 38 years giving him an extensive and practical background on bankruptcy issues. Mr. Schaeffer is a Certified Expert Witness for Bankruptcy cases and has worked on over 300 preference cases, participated in numerous mediations and has testified in Bankruptcy Court.

In this course students will:

·         Learn about New Value, what it is, how to compute it and how it can reduce your company's potential preference exposure.

·         Learn about the danger signs that indicate a customer may be heading for bankruptcy

·         This course provides 20 warning signs which credit managers should always be aware.

·         Learn the 6 essential actions that can be taken when a customer bankruptcy is anticipated in order to reduce your company's potential credit losses.

·         Learn the 10 actions you can take immediately once a customer has filed for bankruptcy.

·         Learn what documents need to be located to prepare for bankruptcy court actions and preference defenses.

·         Learn how to keep these documents safe.

·         Learn what actions and decisions need to be taken to comply with bankruptcy laws, court rules and to satisfy your company's sales goals.

◦       For example, learn under what circumstances and under what credit terms it is wise to sell to a customer once they've filed for bankruptcy.

◦       Learn what documents need to be filed to help ensure a payout from the estate of the bankrupt customer.

·         Learn the 6 conditions that pertain to the definition of a bankruptcy preference.

·         Learn what the defenses to a bankruptcy preference action are in order to reduce your company's exposure to successful preference actions by the bankrupt customer's estate.

·         Learn about the Ordinary Course of Business defenses which are critical to reducing preference exposure.

·         Learn who your company may need to hire in the event of a preference action, such as attorneys and expert witnesses. Also, learn about how mediation may help to settle a bankruptcy preference action and how mediators are paid.

·         Learn how to reduce or eliminate the potential for bankruptcy actions ever happening to your company.