Preference payment
Definition
A payment made to a creditor within the statutory preference period (typically 90 days before bankruptcy filing, one year for insiders) that gives that creditor more than it would recover in a liquidation. The trustee can reverse preference payments and return funds to the estate.
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Explained in
- Bankruptcy and Insolvency FraudA payment made to a creditor within the statutory preference period (typically 90 days before bankruptcy filing, one year for insiders) that gives that credito...