Preferences: When does the Clock Start Running?

Creditors may now be subject to more preference actions, especially for those cases filed in Indiana. The Seventh Circuit recently overturned long-standing precedent that the preference period on garnishment of attachment would no longer run from the date of service or knowledge of the attachment but when the funds were paid over.

The Seventh Circuit Court of Appeals in Mark A. Warsco v. CreditMax Collection Agency, Inc., 56 F.4th 1134 (7th Cir. 2023), looked to the United States Supreme Court’s ruling in Barnhill v. Johnson 503 U.S. 393 (1992 . . .

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Member OH, Maurice Wutscher LLP (Beachwood, OH)

Alan Hochheiser is a leading practitioner in the areas of creditors’ rights and bankruptcy law. He advises and represents businesses, regional and national banks, credit unions, equipment lessors and other lenders, as well as secured and unsecured creditors.

Among his accomplishments, he has successfully resolved non-dischargeable claims based upon fraud conversion and breach of fiduciary issues and has successfully handled the assumption of leases in the bankruptcy of a major airline.

Al has been named to ALM’s list of Cleveland’s Top-Rated Lawyers and is peer-rated AV Preeminent by Martindale-Hubbell, the worldwide guide to lawyers.

Al is the Chair of the ABA Business Law Section Consumer Bankruptcy Committee, a Consumer Committee member of the American Bankruptcy Institute, an associate member of the National Association of Bankruptcy Trustees and a Creditors Auxiliary member of the National Association of Chapter 13 Trustees. the Receivables Management Association International (RMAI), and the Ohio State Bar Association.

He is a frequent speaker and author on topics relevant to creditors’ rights and bankruptcy law.

Al earned his Bachelor of Arts cum laude from the State University of New York at Albany and his Juris Doctor from Case Western Reserve University School of Law.

He is admitted to practice law in Ohio, the U.S. Supreme Court, the U.S. Courts of Appeals for the Third, Fourth and Sixth Circuits and the U.S. District Courts for the Western District of Arkansas, the District of Colorado, the Northern and Southern Districts of Indiana, the Eastern and Western Districts of Michigan, the Northern and Southern Districts of Ohio, the Western District of Pennsylvania, the Western District of Tennessee, and the Eastern and Western Districts of Wisconsin.

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