- preferential transfer
USApreference, Also known as a preferential transfer.A transfer made by an insolvent debtor to a creditor in payment of a preexisting debt within 90 days before the date when the bankruptcy petition is filed (or if the creditor is an insider, within one year of the filing) that allows the benefiting creditor to receive more than it would have otherwise received in a Chapter 7 liquidation. The debtor is presumed insolvent on and during the 90 days immediately preceding the date of the filing of the petition. Such transfers may be recovered by the debtor-in-possession or the Chapter 11 trustee for the benefit of all creditors, helping to ensure an equality of distribution among creditors of the same class.For further information, see Practice Note, Preferential Transfers: Overview and Strategies for Lenders and Other Creditors (www.practicallaw.com/6-381-6416).
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.
Look at other dictionaries:
preferential transfer — Certain transfers or payments made to creditors within 90 days before the bankruptcy is filed may be reversed and recovered by the bankruptcy court. Where the creditor is an insider (relative, shareholder, etc.) the 90 days is extended to one… … Glossary of Bankruptcy
preferential transfer — A transfer of property made by an insolvent debtor to one creditor to the exclusion of others. 29 Am J Rev ed Insolv § 82. An act of bankruptcy; a transfer of any of the property of a creditor for or on account of an antecedent debt, made or… … Ballentine's law dictionary
preferential transfer — See preference preferential assignment … Black's law dictionary
preferential transfer — See preference. American Banker Glossary … Financial and business terms
preferential lien — A lien obtained under circumstances which makes it a preferential transfer and subject to being avoided. (Bernstein s Dictionary of Bankruptcy Terminology) United Glossary of Bankruptcy Terms 2012. preferential lien A lien obtained under… … Glossary of Bankruptcy
preferential — pref·e·ren·tial /ˌpre fə ren chəl/ adj 1: of or constituting a preference a preferential transfer 2: giving preference to union members esp. in hiring a preferential shop 3: showing preference these creditors may obtain preferential … Law dictionary
bankruptcy — /bangk rupt see, reuhp see/, n., pl. bankruptcies. 1. the state of being or becoming bankrupt. 2. utter ruin, failure, depletion, or the like. [1690 1700; BANKRUPT + CY] * * * Status of a debtor who has been declared by judicial process to be… … Universalium
Unfair preference — In many legal systems, 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… … Wikipedia
trustee — an agent of the court who manages the property of the debtor for the benefit of the creditors. The court appoints a trustee in most Chapter 7 cases and in Chapter 11 cases when it determines that the debtor s management should not remain in their … Glossary of Bankruptcy
avoidance powers — Rights given to the bankruptcy trustee or the debtor in possession to recover certain transfers of property such as preferences or fraudulent transfers or to void liens created before the commencement of a bankruptcy case (SA Bankruptcy.com)… … Glossary of Bankruptcy