Services | Insolvency and Restructuring | Preference Analyses

Preference Analyses

Under section 547 of the bankruptcy law, the court allows the debtor/trustee to “claw” back recent payments made by debtors during the insolvency period preceding the bankruptcy filing. The recovered funds are then available to the creditors of the estate to share.

GMCO has over two decades of extensive experience preparing preference analyses for bankruptcy trustees and liquidating trusts. We have worked on some of the largest cases with hundreds of preferences analyses. GMCO possesses the special skills sets as certified public accountants, bankruptcy experts, and IT specialists to service this highly specialized area of bankruptcy. Our detailed and complex analyses consider recent case laws applicable to various bankruptcy courts. Our analyses are relied upon by attorneys to trustees and liquidating trusts to portray an accurate presentation of payment activity.

What sets GMCO apart is that we use an automated and proprietary method for extracting and analyzing data developed in-house. Our software program separates debtor financial data from various source files then automatically generates complete and comprehensive schedules (see sample) for each vendor in an easy-to-understand excel spreadsheet format. Our analyses include ordinary course and new value, standard deviation for both preference payments and historic payments, and estimated recoveries. Visual charts (see sample) and tables (see samples) are included to illustrate the strength of each prospective case. Since our software was developed in-house, we can tailor certain assumptions to your specifications, including later modifying our analyses for information obtained from defendants.

But we do more than just rely on computerized data. We are there at the front end and the back end of the process. GMCO will review the hard copies of the debtors’ records to identify notes and information that will assist in the recovery process. GMCO will organize and ship these records if requested. We are available throughout the process to research issues during the litigation process and testify in court in the event that a case goes to trial.

An example of some of the bankruptcy cases we worked on with extensive preference work are:

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