A Transfer to a Creditor or for a Creditor's Benefit Made for or on Account of an Antecedent Debt
Learn about the preference requirement that the debtor must make a prepetition transfer to a creditor or for a creditor's benefit and on account of an antecedent debt.
In another lesson, we learned that a preference is a prebankruptcy transfer from the debtor to a creditor that, if not set aside in bankruptcy, would put the recipient in a better position than other, similarly situated creditors. We also learned that, if the general elements of an avoidable preference are satisfied, the trustee or debtor-in-possession may be able to set the transfer aside and recoup its value for the estate. Two of the general elements of an avoidable preference are that the...