Entry of Default Vacated and Dismissal for no Payment

The Debtor and the Defendant were in the charter broker business.

The Defendant contacted the Debtor and inquired about a round-trip flight. The Defendant specifically requested a certain aircraft for the flight. The Debtor told Defendant that a flight was available with the selected aircraft, and Defendant paid for the flight. After the payment,
the Debtor informed the Defendant that the selected aircraft was unavailable. The Defendant asked for a refund, and the Debtor refunded the money.

Debtor then filed for bankruptcy and the Trustee sought to avoid the refund as a preferential transfer pursuant to Bankruptcy Code Section 547.

The Defendant did not respond to the Complaint on time, and a default was entered against the Defendant.

The Defendant then retained us.

After retention, we were able to vacate the default entry and file an answer. In addition, we presented our defenses to the Plaintiff and obtained a dismissal of the case for no payment.

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