Selena pays back a $2,000 loan from her parents within one year before she files her bankruptcy petition.This is an example of:

Question

Quizplus · Accepted Answer

If the favored creditor is an insider-a relative of an individual debtor or an officer,director,or related party of a company-who had reasonable cause to believe the debtor was insolvent at the time the transfer was made,then a preferential payment made to that creditor up to one year prior to the filing of the petition can be recovered by the trustee.

Selena Pays Back a $2,000 Loan from Her Parents Within