Bankruptcy Preference Actions: Litigating the Ordinary Course of Business Defense When Nothing is Ordinary

A live 90-minute CLE video webinar with interactive Q&A

Wednesday, June 16, 2021

1:00pm-2:30pm EDT, 10:00am-11:30am PDT

Early Registration Discount Deadline, Friday, May 28, 2021

or call 1-800-926-7926

This CLE webinar will review the ordinary course of business defense to preference actions. The program will help counsel identify new strategies applicable when practices between the parties and in their industry are or have become anything but ordinary. The panel will also explore the limits on the bankruptcy court's discretion in interpreting "ordinary."


Creditors who the debtor paid within the 90 days (longer in some cases) could not be forced to disgorge them if they were made in the "ordinary course of business" between the creditor and debtor or made according to the ordinary business terms in the industry.

The Bankruptcy Code does not define "ordinary course of business" or "ordinary terms." While certain methods and conventions have developed to establish these defenses, they are not likely to work when entire industries and economies have been thrown into chaos. Counsel will need to have strategies and arguments for asking the bankruptcy courts to modify or change their analysis.

The Consolidated Appropriation Act of 2021 (CAA) protects some creditors who accommodated their obligors. Still, the CAA does not cover many common types of obligations, including leases of personal property or goods and services sold by purchase orders not subject to a master agreement.

Listen as this panel reviews the ordinary course of business defense, the CAA, and best strategies for asserting the ordinary course of business defense in extraordinary situations.



  1. Introduction
  2. Understanding the debtor's billing processes
  3. Ordinary between the parties
  4. Ordinary terms
  5. Impact of the CAA


The panel will review these and other notable questions:

  • What are best practices for preventing a creditor from becoming a target of a preference action?
  • What steps can be taken to minimize or eliminate preference exposure if a demand is received or an action is commenced?
  • What is the standard for bringing preference actions against corporate insiders? Why is the burden tougher to establish these claims?


Kovsky-Apap, Deborah
Deborah Kovsky-Apap

Troutman Pepper

Ms. Kovsky-Apap focuses her practice on bankruptcy and out-of-court workouts. She also has substantial litigation...  |  Read More

Additional faculty
to be announced.
Attend on June 16

Early Discount (through 05/28/21)

Cannot Attend June 16?

Early Discount (through 05/28/21)

You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. Strafford will process CLE credit for one person on each recording. All formats include program handouts.

To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Video