Question

  On November 5, Hayes, Inc., a small subcontractor, opened an account with Basic Corp., a carrier of construction materials. Hayes promised to pay its bills within 30 days of purchase. Although Hayes purchased a substantial quantity of goods on credit from Basic, it made few payments on the account until the following March, when it paid Basic over $21,000. On March 14, Hayes filed a voluntary petition under Chapter 7.

Why did Hayes pay Basic in March? Does the bankruptcy trustee have a right to recover this payment? Is it fair to Hayes’ other creditors if Basic is allowed to keep the $21,000? It is fair to Hayes if Hayes is forced to return $21,000?

Answer 1

Solution:

A bankruptcy trustee is required to gather the bankrupting gathering's benefits and disperse them. For this situation, the $21,000 isn't a piece of Haye's benefits since it was paid back to Basic.

Haye's had been subject to Basic for installments and was required to pay on them.

The bankruptcy trustee can't review a recently paid obligation.

In spite of the fact that Haye's different borrowers may not think it is reasonable. Basic got the cash before section 7 was documented.