What the Mitchell Gold Adversary Proceedings Mean for Creditors

If your business provided goods or services to Mitchell Gold before the collapse, you may be facing a complaint that seeks repayment of prior invoices. The Trustee’s position is that such payments gave one creditor an advantage over others, even when the transactions were legitimate and documented.

Why Preference Actions Matter in Bankruptcy

Preference actions are common in large cases and are frequently filed in bulk. Vendors, suppliers, landlords, and service providers can be drawn into litigation that strains operations and cash flow. Without a strong defense, creditors can be forced to return substantial sums.

Common Defenses to Clawback Claims

• Ordinary course of business: payments consistent with the parties’ historic practices.
• New value: additional goods or services supplied after payment that offset liability.
• Contemporaneous exchange: payment timed with delivery of goods or services.
• Procedural and settlement strategy: tools that limit exposure and improve outcomes.

Each defense depends on accurate records, timelines, and industry practice. Early analysis improves leverage and results.

Deadlines and the Importance of Early Action

Response deadlines are short. Missing a deadline can forfeit important rights. Engaging counsel quickly allows you to protect defenses, frame the facts, and negotiate from a position of strength.

Strategic Counsel for Creditors Nationwide

At The Law Office of Magdalena Zalewski PLLC, we represent creditors exclusively in bankruptcy litigation nationwide. Our practice focuses on clawback defense, creditor recovery, and efficient resolution of high-stakes adversary proceedings.

Contact us to schedule a confidential consultation if your company has been named in the Mitchell Gold adversary proceedings or if you believe you may be targeted.