Bankruptcy Preference Action Affidavit

Bankruptcy Preference Action Affidavit Template

When a bankruptcy trustee needs to investigate and potentially recover preferential transfers made before a debtor filed for bankruptcy, detailed documentation is essential. This Bankruptcy Preference Action Affidavit template provides legal professionals, bankruptcy trustees, and creditors with a structured format for documenting preference claims under 11 U.S.C. § 547.

What is a Bankruptcy Preference Action?

Under bankruptcy law, a trustee can recover certain transfers made by the debtor within 90 days (or one year for insiders) before filing for bankruptcy if those transfers gave a creditor more than they would have received in a Chapter 7 liquidation. This affidavit helps establish the elements necessary for a preference action claim.

Key Components of This Template

This comprehensive affidavit captures all critical elements including the transfer timeline and dates, detailed insolvency evidence at the time of transfer, ordinary course of business analysis to assess potential defenses, the trustee's avoidance claim basis, and supporting documentation. The structured format ensures compliance with bankruptcy court requirements while providing clarity for all parties involved.

Who Should Use This Template?

Bankruptcy trustees can use this form to document preference claims and initiate avoidance actions. Creditors' attorneys defending against preference actions will find it useful for preparing responses and gathering evidence. Bankruptcy litigation specialists benefit from the organized approach to complex preference analysis. Law firms handling bankruptcy matters can streamline their case preparation and documentation processes.

Streamline Your Bankruptcy Workflow with Paperform

Built with legal professionals in mind, this template offers conditional logic that adapts based on transfer type and timing, automatic calculations for preference period determination, secure document upload for supporting evidence, and professional formatting suitable for court submissions.

For firms handling multiple bankruptcy cases, integrate this form with your case management system using Stepper to automatically route submissions to the appropriate team members, trigger follow-up workflows, and maintain organized case files. When additional signatures are needed from co-trustees or experts, seamlessly connect with Papersign to obtain legally binding eSignatures.

Paperform's SOC 2 Type II compliance and robust security features ensure that sensitive bankruptcy information remains protected throughout the documentation process. Start with this template and customize it to match your firm's specific requirements and jurisdictional needs.