Unfair debt collection

[phoenixman1]

What is the name of your state? Arizona
I am a licensed contractor in Arizona and am a sole proprietor. Federal bankruptcy law allowed a company I did business with to sue me for all monies paid to me 90 days prior to their Petition for Bankruptcy. They are now trying to collect that money, which I don't have, and I would like to know how can I protect myself and my property.

 

[Ladynred]

The Trustee, and by extenstion this company, has the right to recover what is considered 'preferential payments' paid out in the 90 days prior to filing. There isn't much you CAN do to stop it or "protect" your stuff. Ultimately it's federal law at work here, not just a simple civil suit. You could wind up with the Trustee him/herself after you for return of the funds.

I suggest you find yourself a lawyer ASAP - one who is versed in bankruptcy law and whatever chapter of bankruptcy was filed.