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"Clawback" on Employee Expenses?

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Junior Member
The PA (a Delaware Corp) company for which I was employed for over 20 years was liquidated in bankruptcy last year. I was a divisional manager and operating officer of one of the divisions.

I recently have begun to receive notifications from the Trustee's attorneys that, as an "insider", I am potentially liable for repayment of almost $25,000. The items cited were company payments to me of legitimate employee expenses in the 12 month period before the bankruptcy filing. None of these payments were preferential, and they were all made within the company's normal accounting processes.

I am concerned that this might get to a point where I will need to get legal counsel to defend myself. The costs of this could potentially approach the disputed amount, and I can't see any way to recover my expenses even if I'm successful in my defense.

Can anyone tell me if these types of cases are typically deemed merited by the courts, and what I can do to defend myself , short of hiring an attorney?


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