What is a contemporaneous exchange?

Contemporaneous exchange is when products, goods or services are provided to a debtor in exchange for payment from the debtor for those services. An example is when a creditor refuses to ship goods to a debtor unless payment is made at the time the goods are delivered.

What is a contemporaneous exchange for new value?

Contemporaneous exchange for new value is a statutory defense available to a creditor facing a preference action filed by a trustee of a bankruptcy estate (or a debtor in possession) to recover payments made by the debtor to a creditor prior to the filing of the bankruptcy petition.

What is an antecedent debt?

antecedent debt. An antecedent debt is created when a creditor receives a right to. payment from the debtor for goods or services.12 Section 547(b)(2) of the. Bankruptcy Code requires that the party who is alleged to have received a preference. must have been owed a “debt” by the debtor, and the debtor must have owed …

What is a preference period?

The “preference period” is 90 days prior to the bankruptcy filing for typical creditors and 1 year for “insiders.” Insiders are defined as relatives of the debtor, a general partner of the debtor, or, if the debtor is a corporation, officers, directors, or a person in control of the company.

What is Avyavaharika debt?

Generally speaking, a debt is said to be “avyavaharika” when it is “repugnant to good morals”. The word avyavaharika does not cover merely those debts which are illegal or immoral, but also all debts which the Court regards as inequitable or unjust to make the son liable.

What is antecedent debt under Hindu law?

“Antecedent” literally means prior or preceding in point of time, but the words “antecedent debt” as used in Hindu Law implies two things, (a) antecedent in time, and (b) antecedent in fact in nature, that is to say, the debt must be truly independent of and not part of the transaction impeached.

How do you avoid preference payments?

Put the Debtor on Cash-in-Advance Terms. This is the best and easiest way to avoid a preferential transfer. By its own terms, a cash-in-advance payment is not a preferential transfer because the debtor is not making payment for an antecedent debt.

What is a 90 day preference period?

The Preferential-Payment Rule This statute provides that when a debtor makes a payment to a creditor and the debtor files bankruptcy within 90 days of that payment, the Bankruptcy Court can force the creditor to pay that money back to the debtor for distribution to all of the debtor’s creditors.

Is son liable to pay father’s debt?

You are not liable to pay the debts taken by your father . Recovery can be made from his estate which he may leave behind and which you inherit. Recovery from you can be effected if you stand surety for the repayment of the money borrowed by your father or in case you are a co borrower.

Is son responsible for father’s debt in India?

(1) A Hindu son is not personally liable to pay the debt of his father even if the debt was not incurred for an immoral purpose : the obligation of the son is limited to the assets received by him in his share of the joint family property or to his interest in such property, and it does not attach to his self- …

Who is a Coparcener?

Under the Hindu Law, the coparcener is a term to indicate those male members of a Hindu family who have an undivided interest over the ancestral property by birth. After the 2005 amendment of the Hindu Succession Law, a daughter of the family is also considered a coparcener.

Can Partition be reopened?

A partition can be re-opened on the grounds of Mistake, Fraud, Son in Womb, Adoption, Disqualified coparceners, Son conceived and born after partition, Absentee coparcener; and Minor coparcener. In case the partition is found fraudulent, it can be set-aside and the person injured can claim to reopen of the partition.