Avoiding Powers of Debtor in Possession

The video tutorial explains the concept of possession in Chapter 11 bankruptcy, focusing on preferential and fraudulent payments. It details how preferential payments can be recovered if they allow creditors to receive more than they would in a Chapter 7 liquidation. The video also covers extensions for insider payments and various defenses against claims of preferential payments, such as contemporaneous exchange of value and payments in the ordinary course of business. Additionally, it defines fraudulent payments as those intended to defraud creditors or made without equivalent value.

What is the significance of recovering preferential or fraudulent payments in a Chapter 11 bankruptcy?

Define preferential payments and explain the conditions under which they can be deemed as such.

How do unsecured creditors differ from secured creditors in the context of preferential payments?

Discuss the implications of making payments to insiders in relation to preferential payments.

What are some defenses against claims of preferential payments?

Explain the concept of fraudulent payments and the criteria that classify a payment as fraudulent.

What is the time frame within which a debtor in possession can look back to identify fraudulent payments?