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How to defend yourself against a preference claim

Apr 29, 2020
How to defend yourself against a preference claim

Transcript:

Ross Forrester: 00:04 Hey guys, I’m Ross.

Camille Doucet: 00:06 I’m Camille.

Ross Forrester: 00:07 And today we’re talking about preference payment claims. Basically, you’re in business and someone pays you, they go into liquidation and the liquid they want you to pay your money back. Not a good position to be in, but there’s a couple of ways that you can defend yourself against a preference claim.

Camille Doucet: 00:24  Yes. So the first thing is that you must demonstrate that something has been provided in good faith. And the other point is that you must prove that you have received the payment in good faith. And the third one is that you have no reason to suspect that the company was insolvent.

Ross Forrester: 00:46 Yep. So if you do get a preference payment claim and someone wants you to hand over your hard earned money, you’ve got a couple of defenses, just make sure you act on them properly. But there is a way of helping out and stopping them because it can be a bit of a nasty surprise.

Ross Forrester: 01:01 Thanks guys.

Camille Doucet: 01:02 Thank you.



Category: Family Owned BusinessFinancialLegalVlog

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