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New page: A '''preferential transfer''' is a transfer of money (or property) by someone in the period just prior to going into bankruptcy. By law those transfers can then be undone or rescinded...

A '''preferential transfer''' is a transfer of money (or property) by someone in the period just prior to going into [[bankruptcy]]. By law those transfers can then be undone or rescinded, and the money retrieved from the recipient, after the debtor goes into [[bankruptcy]].

[[Federal]] law<ref> 11 U.S.C. § 547(b).</ref> defines as '''preferential transfer''' as "any transfer of an interest of the debtor in property --

"(1) to or for the benefit of a creditor;

"(2) for or on account of an antecedent debt owed by the debtor before such transfer was made;

"(3) made while the debtor was insolvent;

"(4) made --

"(A) on or within 90 days before the date of the filing of the petition; or

"(B) between ninety days and one year before the date of the filing of the petition, if such creditor at the time of such transfer was an insider; and

"(5) that enables such creditor to receive more than such creditor would receive if --

"(A) the case were a case under chapter 7 of this title;

"(B) the transfer had not been made; and

"(C) such creditor received payment of such debt to the extent pro- vided by the provisions of this title."

== References ==

<references/>

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Revision as of 14:05, January 20, 2008

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