As many creditors have unfortunately discovered, the Bankruptcy Code allows a debtor to sue the creditor for certain payments – called preferences – that the creditor received from the debtor prior to the bankruptcy.
USA, Texas, Insolvency & Restructuring, Litigation, Haynes and Boone LLP, Bankruptcy, Credit (finance), Debtor, Collateral (finance), Foreclosure, Default (finance), Title 11 of the US Code