Drafting preference demand letters requires meticulous review of financial records, precise calculation of transfer amounts and dates, and careful citation of bankruptcy code provisions. Attorneys spend hours cross-referencing transactions against the 90-day preference period, researching legal standards, and ensuring every element of 11 U.S.C. § 547 is properly addressed.
Drafting preference demand letters requires extensive document review, complex legal analysis of five statutory elements, and meticulous factual presentation. Attorneys spend hours gathering transfer details, analyzing defenses, and ensuring compliance with 11 U.S.C. § 547 requirements, often delaying critical recovery efforts.
CaseMark automates preference demand letter generation by analyzing your case documents, identifying preferential transfers, and producing comprehensive letters with complete § 547(b) analysis and defense evaluation. Generate litigation-ready demand letters in minutes instead of hours while ensuring accuracy and professional quality.
This workflow is applicable across multiple practice areas and use cases
Commercial litigators representing creditors or trustees pursue preference claims against vendors, suppliers, or other commercial parties who received payments within the preference period.
Preference actions under 11 U.S.C. § 547 are frequently litigated in commercial disputes involving business bankruptcies, requiring demand letters before filing adversary proceedings.
M&A attorneys need to identify and recover preferential transfers made by distressed companies prior to bankruptcy filing during due diligence or post-closing disputes.
Preference actions are critical in M&A transactions involving distressed assets or bankruptcy scenarios, where buyers or creditors committees need to claw back preferential payments to maximize estate value.
Financial services attorneys advising banks and lenders need to evaluate exposure to preference claims and draft responses when clients receive preference demand letters.
Banks and financial institutions are common targets of preference actions for loan repayments or transfers made within 90 days of bankruptcy, requiring specialized knowledge of both banking and bankruptcy law.
Corporate counsel advising boards and officers on fiduciary duties must address preference exposure when companies face insolvency or potential bankruptcy filing.
Directors and officers need to understand preference risks when authorizing payments during financial distress to avoid personal liability and ensure compliance with fiduciary obligations.
CaseMark requires the bankruptcy petition showing the filing date and case details, transfer records documenting the dates and amounts of payments, and creditor information identifying the recipient. Optional documents like invoices, payment history, and insolvency evidence enhance the analysis. The system extracts relevant details from these documents to generate a comprehensive demand letter with complete legal analysis.
CaseMark analyzes each transfer against the five required elements under 11 U.S.C. § 547(b): transfer to a creditor, on account of antecedent debt, while debtor was insolvent, within the preference period (90 days or one year for insiders), and enabling greater recovery than in Chapter 7 liquidation. The system automatically calculates preference periods, applies the insolvency presumption, and evaluates whether statutory requirements are met based on your case documents.
Yes, CaseMark automatically evaluates and addresses common affirmative defenses under § 547(c), including ordinary course of business, contemporaneous exchange, and new value defenses. The generated letter includes analysis of why these defenses do not apply based on your specific facts, or acknowledges potential defense issues that may affect recovery. This preemptive analysis strengthens your position for either settlement negotiations or subsequent litigation.
CaseMark automatically calculates the correct preference period based on the recipient's status, applying the 90-day lookback for ordinary creditors or one-year lookback for insiders under 11 U.S.C. § 101(31). The system identifies potential insider relationships from your uploaded documents and flags transfers that fall within the extended preference period, ensuring accurate temporal analysis for your demand letter.
CaseMark handles multiple transfers seamlessly by organizing them chronologically in the demand letter with individual dates, amounts, and transaction details. The system calculates the total demand amount, presents each transfer clearly for audit trail purposes, and maintains professional formatting whether you're recovering one payment or dozens. This comprehensive presentation strengthens your claim and facilitates creditor verification.