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    Take the Cash or the Claim?: Intersection of Sections 502(h), 503(b)(9) and 547 of the Bankruptcy Code
    24 January 2024

    You ship goods to a customer that is having financial difficulties. The customer sends you a check for the goods. What do you do?

    Cash it and potentially be sued for a preference after the customer files for bankruptcy

    or

    Don’t cash it, and have a claim in the ensuing bankruptcy

    USA, Insolvency & Restructuring, Litigation, Womble Bond Dickinson (US) LLP

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