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"You want what? What to do when faced with a bankruptcy preference demand," Jeffrey Grasl Interviewed by Smart Business Magazine

You want what?
What to do when faced with a bankruptcy preference demand

Jeffrey Grasl Interviewed by Smart Business Magazine

Whether your company is large or small, sooner or later you will experience the pain and apprehension that come from receiving notice that one of your customers has filed bankruptcy. The first thing that many companies do after receiving notice is run to the accounts receivable ledger to see how much money just became uncollectible. However, that may not be the end of the pain, says Jeffrey S. Grasl, member, McDonald Hopkins PLC. “Many companies don’t realize that the real knife in the gut may come 18 to 24 months later when they receive a letter demanding that they pay back some of the money the bankrupt company previously paid to them,” says Grasl. “In bankruptcy parlance, this is referred to as a ‘preference.’” Smart Business spoke with Grasl about what to do when faced with a bankruptcy preference demand.

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