A payment made with the intention of giving a related person priority over at least one other creditor within one year of a bankruptcy order is described under the Bankruptcy and Insolvency Act as a reviewable settlement.

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Such payments are referred to as "preferential payments" or "preferences" under the Bankruptcy and Insolvency Act, not reviewable settlements. Preferences occur when a debtor gives an unfair advantage to one or more creditors over others shortly before declaring bankruptcy.

A Payment Made with the Intention of Giving a Related