Avoidance of overdraft payments due to preferential treatment

Insolvency & Restructuring

The Insolvency Act provides insolvency administrators with tools to challenge any actions committed by a debtor during a crucial period prior to the opening of insolvency proceedings. Recent Supreme Cour decisions regarding § 31 IO now clarify existing judicature regarding avoidance of overdraft payments due to preferential treatment and set the bar very high regarding the (un)avoidability of overdraft payments in the 12 months before the opening of insolvency proceedings.

 

ILO-Newsletter, dd. 21 December 2018 (PDF)

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Alexander

Dr. Alexander Isola

M.C.J. (NYU) Partner
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