What Is the Contemporaneous Exchange Defense to a Preference Action?

Preferences are a common issue in bankruptcy proceedings. The Bankruptcy Code provides several affirmative defenses to assist creditors in mitigating or eliminating their preference exposure. One such affirmative defense is the contemporaneous exchange defense. This article addresses the key issues when asserting the contemporaneous exchange defense in a bankruptcy case.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

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