A voidable preference occurs when there is a transfer of assets to a creditor shortly before a debtor files for bankruptcy protection. The recipient of these assets must return them to the bankruptcy estate.
An unfair preference (or "voidable preference") is a legal term arising in bankruptcy law where a person or company transfers assets or pays a debt to a creditor shortly before going into bankruptcy, that payment or transfer can be set aside on the application of the liquidator or trustee in bankruptcy as an unfair
An unfair preference (or "voidable preference") is a legal term arising in bankruptcy law where a person or company transfers assets or pays a debt to a creditor shortly before going into bankruptcy, that payment or transfer can be set aside on the application of the liquidator or trustee in bankruptcy as an unfair
Martin48 sustained a finding of voidable preference when a merchant debtor within six weeks of bankruptcy, after being presented with a credi- tor's bills
The idea behind voidable preferences is to prevent the debtor from favoring certain creditors over others in the period leading up to bankruptcy. Essentially, the law tries to ensure that all creditors are treated as equally as possible when assets are distributed during the bankruptcy process.
Legal term in bankruptcy law
An unfair preference is a legal term arising in bankruptcy law where a person or company transfers assets or pays a debt to a creditor shortly before going into bankruptcy, that payment or transfer can be set aside on the application of the liquidator or trustee in bankruptcy as an unfair preference or simply a preference.
Legal term in bankruptcy law
An unfair preference is a legal term arising in bankruptcy law where a person or company transfers assets or pays a debt to a creditor shortly before going into bankruptcy, that payment or transfer can be set aside on the application of the liquidator or trustee in bankruptcy as an unfair preference or simply a preference.