Balch Partner Jeremy Retherford and Attorney Madison Field Discuss Bankruptcy Preference Law for Business Owners in Guest Column for Business Alabama
Jeremy Retherford, partner in the firm’s Birmingham office and co-chair of the Financial Services Practice, and Madison Field, attorney in the Birmingham office and member of the Financial Services Practice as well as the Litigation Practice, authored a guest column for Business Alabama aimed at helping business owners understand preference payments, a complex issue in bankruptcy law. They noted that this understanding could help businesses be better prepared should they face a lawsuit seeking the recovery of payments.
In the column published December 6, 2022, Jeremy and Madison break down the concept of preference payments, outlining why payments from a customer just prior to their filing bankruptcy might have to be paid back.
In addition to explaining when and why preference payments may be requested from a business, Jeremy and Madison also outline defenses business owners can use to defend a preference claim. They focused primarily on the “ordinary course defense” and the “new value defense.”
Jeremy has experience working with clients at all stages of bankruptcy. He has devoted his entire career to representing lenders and other creditors. A significant portion of Jeremy’s practice is focused on enforcing his clients’ rights and remedies after default. However, he also counsels clients on the structure of transactions to account for the risk of default and bankruptcy. As part of his representation of lenders, Jeremy works closely with his clients in the management and sale of real property acquired through foreclosure.
Madison focuses on bankruptcy and financial services litigation and represents a variety of creditors, financial institutions and businesses.