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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.

Transcript

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...

Lessons

    • 1. Welcome to Bankruptcy
    2. Foundations of Bankruptcy
    3. The Estate and the Automatic Stay
    4. Creditors, Claims, Discharge, and Priority
    5. Chapter 7 Liquidation
    • Chapter 7 Panel Trustee
    • Distribution of Estate Property in Chapter 7
    • Discharge in Chapter 7
    • Personal-Property Collateral in Chapter 7
    • General Grounds to Dismiss a Chapter 7 Case
    • Introduction to the Means Test and Dismissals or Conversions for Abuse
    6. Debt Adjustment in Chapter 13
    • Eligibility to File for Chapter 13
    • The Estate in Chapter 13
    • Introduction to the Chapter 13 Plan of Debt Adjustment
    • Terms Permitted in a Chapter 13 Plan
    • Chapter 13 Confirmation Requirements: Treatment of Secured Claims
    • Chapter 13 Confirmation Requirements: Treatment of Unsecured and Priority Claims
    7. Preferences
    • Introduction to Preferences
    • A Transfer to a Creditor or for a Creditor's Benefit Made for or on Account of an Antecedent Debt
    • A Transfer Enabling a Creditor to Receive More Than It Would in Chapter 7
    • The Net-Benefit Rule
    • Contemporaneous Exchanges for New Value
    • Transfers in the Ordinary Course of Business
    • Subsequent New Value